PT Vale reports lower sales in 1Q17

PT Vale reports lower sales in 1Q17

PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO) today announced its unaudited results for the first quarter of 2017 (“1Q17”). The Company recorded sales of US$143.9 million in the quarter, 19% lower than sales in 4Q16 but 32% higher than 1Q16 sales as the Company delivered 17,524 metric tons (t) of nickel matte.

“We realized a slightly lower sales price in the first quarter of 2017 compared to the fourth quarter of 2016,” reported Nico Kanter, CEO and President Director of the Company.

And we believe that the nickel price in 2017 will remain low as inventory levels on the London Metal Exchange (“LME") and Shanghai Futures Exchange (“SHFE”) are still high. There is also uncertainty in the global nickel market over whether the Indonesian ore export quota will add additional volume or simply replace a diminishing ore supply from the Philippines to China. This underlines the importance of remaining focused on optimizing production capacity, improving efficiency and reducing costs.”

Nico Kanter

As reported last week, PT Vale conducted planned maintenance activities in 1Q17 but with a shorter shutdown duration than in 1Q16. As a result, nickel in matte production volume in 1Q17 was 2% higher than in 1Q16. These maintenance activities are crucial to improving operational efficiency and continuity.

1Q17 Highlight

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PT Vale reports lower sales in 1Q17