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20240630_INCO_Laporan Informasi dan Fakta Material_31677179_lamp4.pdf

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Page 1
   Higher production and deliveries in 1Q24 compared to the same quarter last year

Jakarta, June 28th, 2024 – PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO)
and its subsidiary (jointly referred to as the “Group”) today announced its production and audited
financial results for the first quarter of 2024 (“1Q24”). The Company recorded production of 18,199
metric tons (“t”) of nickel in matte and deliveries of 18,175 t of nickel matte in the quarter, resulting in
total Revenue of US$229.9 million.


                                                      Production Highlights


                                                                           1Q24           4Q23           1Q23

                            Nickel in matte production (t)                18,199         19,084         16,769



As part of the Company’s maintenance strategy, there were no major shutdowns in 1Q24, leading to
a 9% increase in the production of nickel in matte compared to the same period last year. However,
this production level was 5% lower than the previous quarter, primarily due to the lower nickel grade.

The Group achieved a Revenue of US$229.9 million, reflecting a 22% and 37% decline compared to
Revenue in 4Q23 and 1Q23, primarily due to a lower average realized price. The average realized
price adjusted from US$14,239/t in 4Q23 and US$21,672/t in 1Q23 to US$12,651/t in 1Q24, reflecting
an 11% and 42% change. Despite the fluctuations in nickel price, the Company successfully maintain
its Cost of Revenue. On a year-on-year basis, the Company’s Cost of Revenue fell by 8%, from
US$228.2 million in 1Q23 to US$209.8 million in 1Q24, and it is also 10% lower than the previous
quarter. In addition to benefiting from lower commodity prices, the Company remains focused on
improving efficiencies and reducing costs while continuously enhancing our discipline on good mining
practices.

The following table provides details on PT Vale’s High Sulphur Fuel Oil (“HSFO”), diesel and coal
consumption and average price:

                                                                            1Q24           4Q23                     1Q23
                   HSFO volume (barrels)                             425,301             396,234              557,543
                   HSFO average price per barrel                    US$85.63            US$90.93             US$77.59
                   Diesel volume (kilolitres)                         18,473              19,435               15,241
                   Diesel average price per litre                    US$0.84             US$0.90              US$1.02
                   Coal volume (t)                                   117,115             100,789               56,268
                   Coal average price per t (*)                    US$176.85           US$198.01            US$421.94
                 (*) Price in WMT (Wet Metric Ton) and CFR (Cost & Freight) basis




                                                                                                                                             [ 1 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T (62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 2
In line with the Financial Statements as of December 31, 2023, the Group recognized a derivative
asset arising from the additional participating right in its investment in PT Kolaka Nickel Indonesia in
the Financial Statements for the three-month period ended March 31, 2024. As of March 31, 2024,
the Company recorded a decline in the fair value of this derivative asset amounting US$12.88 million
from its value as of December 31, 2023, resulting a recognition of a loss in the fair value of the
derivative asset. This decline is primarily due to the decrease in nickel prices, which is a key
component in valuing the derivative asset.

Considering the Group has not yet recognized the derivative asset and the corresponding gain on
recognition of fair value of derivative asset in the Financial Statements for the period ended March
31, 2023, the Group restated the Financial Statements to include the derivative asset in the Balance
Sheet and the corresponding gain on recognition of fair value of derivative asset in the Interim
Consolidated Statements of Profit or Loss and Other Comprehensive Income.

PT Vale disbursed approximately US$57.4 million in capital expenditures this quarter, a 13% increase
compared to the same period last year of US$50.7 million due to higher spending on sustaining and
growth projects. However, this was 45% lower compared the previous quarter.

The Company’s Cash and cash equivalents as of March 31, 2024 was US$730.8 million, an increase
of 5% and 2% compared to US$698.8 million as of December 31, 2023 and US$717.3 million as of
March 31, 2023, respectively. PT Vale will continue to exercise prudent control of its spending to preserve
cash.

In 2024, PT Vale plans to produce approximately 70,800 t of nickel in matte. At the same time, the
Company will continue to improve productivity and cost efficiency of the operation without
compromising its foremost values: Life Matters Most, Respect Our Planet and Communities.

Readers are encouraged to review the Company’s results. Operational achievements and audited
financial results are summarized on the following pages – all figures are in US$ except for nickel in
matte production and deliveries which are in metric tons.




                                                                                     For further information, please contact:
                                                                                  Bernardus Irmanto, Chief Financial Officer
                                                                                              ptvi.investorrelation@vale.com

                                                                                                                visit our website at
                                                                                                           www.vale.com/indonesia

                                                                                                                              or call us at
                                                                                                                    (+62-21) 524 9000




                                                                                                                                          [ 2 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 3
                                                           PT Vale Indonesia Tbk
                                                    Production and Financial Highlights


                                                                               1Q24              4Q23              1Q23

                      Nickel in matte production1                            18,199            19,084            16,769

                      Nickel matte deliveries1                               18,175            20,673            16,758

                      Average realized price2                                12,651            14,239            21,672
                      EBITDA3                                                    52.4              98.5          173.58
                      Revenue3                                                 229.9             294.4             363.2
                      Profit3                                                      6.2             53.2            168.7
                      Earnings per share4                                    0.0006            0.0054            0.0170

                  1
                    metric ton (t)
                  2
                    US$ per t
                  3
                    US$ million
                  4
                    US$




                                                                                                                                          [ 3 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 4
                                         PT Vale Indonesia Tbk and its subsidiary
                                    Interim Consolidated Statements of Profit or Loss
                                            and Other Comprehensive Income
                                 (In thousands of US$ except basic earnings per share)

                                                                               1Q24                  4Q23                1Q23*)

   Revenue                                                                       229,937              294,367             363,180
   Cost of revenue                                                              (209,843)            (234,249)           (228,244)
   Gross profit                                                                   20,094               60,118             134,936

   Operating expenses                                                             (6,302)               (6,240)           (11,741)
   Other income                                                                    1,559                   490                117
   Other expenses                                                                   (635)              (10,220)            (9,236)
   Operating profit                                                               14,716                44,148            114,076
   Share in net profit from associate                                                   63                     3                    -
   (Loss)/gain on recognition of fair value of derivative
     asset                                                                       (12,880)               24,690              96,180
   Finance income                                                                   9,194               10,064                7,535
   Finance costs                                                                   (2,256)              (6,138)              (1,254)

   Profit before income tax                                                         8,837               72,767            216,537
   Income tax expense                                                              (2,643)             (19,519)            (47,820)
   Profit for the period                                                            6,194               53,248            168,717

   Other comprehensive (loss)/income
   Items that will not be reclassified to profit or loss:
      − Changes resulting from actuarial remeasurement
         of post-employment benefit liabilities                                   (3,544)                (5,701)            (4,588)
      − Income tax on other comprehensive income                                      780                 1,254               1,009
                                                                                  (2,764)                (4,447)            (3,579)
   Items that will be reclassified to profit or loss:
       - Currency differences from translation of
           associate entity’s financial statements                                   (346)                      -                   -

   Total other comprehensive loss                                                 (3,110)                (4,447)            (3,579)
   Total comprehensive income for the period                                        3,084               48,801            165,138

   Profit for the period attributable to:
   Owners of the parent entity                                                      6,194               53,248            168,717

   Total comprehensive income for
    the period attributable to:
   Owners of the parent entity                                                      3,084               48,801            165,138

   Earnings per share
   - Basic and diluted (in full amount of US Dollars)
                                                                                  0.0006                0.0054              0.0170
   *) Unaudited and unreviewed. Restated,
     refer to FS note 42

                                                                                                                                        [ 4 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T (62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 5
                                          PT Vale Indonesia Tbk and its subsidiary
                                   Interim Consolidated Statements of Financial Position
                                                    (In thousands of US$)

                                                                 March 31,                    December 31,                      March 31,
                                                                   2024                           2023                           2023*)
Assets                                                           (Audited)                      (Audited)                      (Unaudited)
Cash and cash equivalents                                             730,852                          698,795                      717,267
Trade receivables - Related parties                                    86,418                          101,813                      120,598
Inventories                                                           143,022                          155,946                      168,102
Prepaid taxes – Corporate Income Tax                                   10,145                                 -                            -
                – Other taxes                                          59,513                           64,599                       71,723
Prepayments and advances                                                4,902                             6,056                        4,002
Other current financial assets                                          5,861                             5,910                        5,412
           Total current assets                                     1,040,713                       1,033,119                     1,087,104

Restricted cash                                                          75,777                           103,857                     91,559
Prepaid taxes - Corporate income tax                                     18,726                            15,015                     10,933
              - Other taxes                                               7,149                            36,498                     31,636
Investments in associate                                                 12,127                            12,410                     12,709
Derivative asset                                                         11,810                            24,690                          -
Fixed assets                                                          1,721,920                         1,695,531                  1,567,276
Other non-current financial assets                                        4,841                             4,879                      3,430
             Total non-current assets                                 1,852,350                         1,892,880                  1,813,723
Total assets                                                          2,893,063                         2,925,999                  2,900,827

Liabilities and Equity
Trade payables - Related parties                                            114                               312                         190
                  - Third parties                                       104,285                           140,515                     123,847
Accruals                                                                 42,381                            33,843                      37,677
Short-term employee benefit liabilities                                  11,903                            25,070                      15,729
Taxes payable – Corporate income tax                                          -                                 -                      18,764
                 – Other taxes                                            7,325                             2,821                       4,474
Lease liabilities                                                         5,916                             5,543                       1,874
Share-based payment liabilities                                              29                               110                         141
Provision for asset retirement                                            6,568                             6,422                       6,106
Other current financial liabilities                                       2,548                             2,091                       2,390
            Total current liabilities                                   181,069                           216,727                     211,192

Long-term post-employment benefit
  liabilities                                                            43,127                            39,695                      35,535
Deferred tax liabilities                                                 14,653                            19,603                      41,150
Lease liabilities                                                         3,960                             3,078                       3,671
Provision for asset retirement                                           76,331                            77,482                      84,395
Other non-current financial liabilities                                   6,302                             4,877                       5,068
              Total non-current liabilities                             144,373                           144,735                     169,819
Total liabilities                                                       325,442                           361,462                     381,011

Equity                                                                2,567,621                         2,564,537                  2,519,816

Total liabilities and equity                                          2,893,063                         2,925,999                  2,900,827

*) Unaudited and unreviewed. Restated, refer to FS note 42

                                                                                                                                         [ 5 ]
  PT Vale Indonesia Tbk
  Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
  Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
  Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
  www.vale.com/indonesia
Page 6
                                     PT Vale Indonesia Tbk and its subsidiary
                                 Interim Consolidated Statements of Cash Flows
                                               (In thousands of US$)

                                                                                 1Q24                    4Q23             1Q23
Cash flows from operating activities
Receipts from customers                                                         245,332              293,394              383,959
Payments to suppliers                                                          (156,730)            (152,786)            (154,647)
Payments of corporate income tax                                                (20,669)             (40,559)             (11,880)
Payments of other taxes                                                         (11,179)             (38,852)             (21,700)
Receipts of tax refunds                                                          50,118               (1,125)                   -
Payments to employees                                                           (37,344)              (4,091)             (32,177)
Withdrawal of financial guarantee                                                28,080                    -                    -
Placement of financial guarantee                                                      -                 (769)             (18,515)
Receipts of finance income                                                        9,194               10,064                7,535
Payments of royalties and levies                                                (14,039)             (18,668)             (19,774)
Net cash flows provided by operating activities                                  92,763               46,608              132,801

Cash flows from investing activities
Payments for acquisition of fixed assets                                         (57,452)           (103,605)             (50,687)
Proceeds from disposal of fixed assets                                               150              (2,062)                 267
Net cash flow decrease from loss of control of a subsidiary                            -                (165)                (165)
Net cash flows used in investing activities                                       57,302            (105,832)             (50,585)

Cash flows from financing activities
Payments of dividends                                                                   -                (789)                   -
Payments of lease liabilities                                                      (2,379)             (3,592)                (465)
Payments of finance costs                                                            (123)               (115)                 (37)
Net cash flows used in financing activities                                        (2,502)             (4,496)                (502)
                                                                                  32,959              (63,720)             81,714
Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the                                698,795             768,371              634,042
 period

Effect of exchange rate changes on cash                                              (902)             (5,856)               1,511
  and cash equivalents

Cash and cash equivalents at the end of the                                      730,852             698,795              717,267
 period




                                                                                                                                       [ 6 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia

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Names mentioned 4 people and organisations named in the text · linked when the evidence is strong

linked person Bernardus Irmanto p.2
possible org Vale Indonesia Tbk p.1 ×22
unresolved org PT Vale’s High Sulphur Fuel Oil p.1
unresolved org PT Kolaka Nickel Indonesia p.2

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