PT Vale records another profitable quarter

About Vale

10/29/2020

PT Vale records another profitable quarter

Jakarta, October 29, 2020 – PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO) and its subsidiaries (together the “Group”) today announced unaudited results for the third quarter of 2020 (“3Q20”). The Group recorded sales of 19,954 metric tons (“t”) with revenues of US$210.6 million in the quarter. While the price realized in 3Q20 was 13% higher than the price realized in 2Q20, the cost of revenue in 3Q20 increased by 0.4% from the cost of revenue incurred in 2Q20.

“Our operation in the third quarter of 2020 was more reliable despite the pandemic, resulting in a higher production volume,” said Nico Kanter, President Director and CEO of PT Vale. “We succeeded in controlling our cost of revenue sustainably in the quarter and, at the same time, benefited from a higher nickel price environment.” The Company booked profits before tax of US$32.2 million in 3Q20, 53% higher than the 2Q20 level of US$21.1 million. Meanwhile, net earnings and EBITDA for the quarter were US$23.5 million and US$84.7 million, respectively. The higher EBITDA in the quarter was mainly driven by a higher average realized nickel price.

We succeeded in controlling our cost of revenue sustainably in the quarter and, at the same time, benefited from a higher nickel price environment.

Nico Kanter, CEO and President Director

The Group’s cash and cash equivalents as of September 30, 2020 were US$361.4 million, an increase of US$72.7 million from the balance at June 30, 2020, due mainly to higher collections from customers. PT Vale will continue to exercise prudent control over its spending to preserve cash.

PT Vale will continue to maintain its focus on improving cost efficiency to sustain competitiveness in the long term without compromising the Company’s foremost values: Life Matters Most and Prize Our Planet.


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3Q20 Quarterly Result 3Q20 Production Report 3Q20 Financial Statement


PT Vale records another profitable quarter