PT Vale reports higher production and sales in the second quarter of 2019

About Vale

8/5/2019

PT Vale reports higher production and sales in the second quarter of 2019

PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO) today announced its interim audited results for the second quarter of 2019 (“2Q19”). The Company recorded production of 17,631 MT of nickel in matte, and sales of US$165.8 million in the quarter.

Production of nickel in matte was about 35% higher in 2Q19 than in 1Q19. In addition, revenue was about 31% higher, due to higher deliveries and average realized price in 2Q19.

Nico Kanter, CEO and President Director

“Production of nickel in matte was about 35% higher in 2Q19 than in 1Q19,” said Nico Kanter, CEO and President Director of the Company. “In addition, revenue was about 31% higher, due to higher deliveries and average realized price in 2Q19. Nickel matte deliveries increased by approximately 22% to 16,965 MT, and average realized price rose by around 7% to US$9,774 per ton in 2Q19 compared to 1Q19. However, considering the volatility in the market, we remain focused on optimizing our production capacity, improving efficiencies and reducing costs while continuously improving our practices and discipline on Health, Safety, and Environment.”

PT Vale recorded EBITDA of US$28.8 million in 2Q19, significantly higher than the 1Q19 of US$4.0 million, primarily due to higher deliveries, higher average realized price and lower cash cost of revenue per metric ton of nickel. The Company produced and delivered more nickel in matte in the 2Q19 compared to 1Q19 as planned maintenance activities were completed. The production and cash cost per unit of production showed good trend in May and June. In addition, the HSFO price decreased by 3%, diesel by 1% and coal by 18% on a unit cost basis resulting to a lower unit cash cost of production compared to 1Q19. Energy costs represent one of PT Vale’s largest costs.

In 2019, PT Vale plans to produce approximately 71,000-73,000 t of nickel in matte. At the same time, the Company will maintain its focus on improving cost efficiency to sustain competitiveness in the long term without compromising the Company’s foremost value: Life Matters Most and Prize our Planet.

Check out the highlight

1Q19 Results and Financial Highlight

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2Q19 Quarterly Result2Q19 Production Report2Q19 Financial Statement


PT Vale reports higher production and sales in the second quarter of 2019