PT Vale reports Profit Before Income Tax (“PBIT”) of US$89.1 million for 2019

About Vale

2/20/2020

PT Vale reports Profit Before Income Tax (“PBIT”) of US$89.1 million for 2019

Jakarta, February 20, 2020 – PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO) and its subsidiaries (together the “Group”) today announced their audited results for 2019. The Group recorded Profit Before Income Tax (“PBIT”) of US$89.1 million in 2019, driven mainly by higher nickel prices and cautious cost management. This represents an increase of 8% over PBIT in 2018. During the last two quarters of 2019, the Group also saw significant improvements in nickel production and average realized price.

We appreciate the hard work of all employees at PT Vale, and we are grateful for this achievement,”

Nico Kanter, CEO and President Director

“We appreciate the hard work of all employees at PT Vale, and we are grateful for this achievement,” said Nico Kanter, CEO and President Director of the Company. “The higher nickel price in the second half of 2019 had a positive impact on our financial performance and allowed us to generate more revenue and cash during the period to compensate for lower results in the first half of 2019. However, what differentiates us is our ability to manage our costs prudently, despite lower nickel production in 2019. Looking at this achievement, we are confident in our ability to maintain our production levels in 2020 and continue to manage our costs effectively.”

The average realized price in 2019 was US$10,855 per t, about 6% higher than the 2018 average realized price. PT Vale recorded sales of US$782.0 million in 2019, 1% above sales recorded in 2018 of US$776.9 million. The Company’s cost of revenue in 2019 decreased by 1% to US$665.6 million from US$672.9 million in 2018.

On October 14, 2019, PT Vale, together with its shareholders, Vale Canada Ltd (“VCL”) and Sumitomo Metal Mining Co., Ltd (“SMM”) and PT Indonesia Asahan Aluminium (Persero) (“Inalum”) signed a Heads of Agreement, representing the beginning of the divestment process. This followed the appointment of Inalum as the Government representative to acquire PT Vale’s divested shares, to fulfil PT Vale’s divestment obligation. On December 30, 2019, all parties agreed to extend the signing deadline for the definitive agreements to the end of the first quarter 2020.

In 2019, for the first time in the history of PT Vale, the Company received a Green PROPER rating from the Ministry of Environment and Forestry (“KLHK”). This marks the first time such a prestigious rating has been awarded to an integrated nickel mining and processing company in Indonesia. Previously, the Company had maintained a Blue PROPER rating for six consecutive years and became a Green PROPER candidate in 2018.

A Green PROPER rating represents acknowledgement by the Government that PTVI’s efforts in environmental management and community development go beyond compliance. The Company was able to achieve this performance through the implementation of environmental management systems, efficient utilization of resources, and making significant efforts to empower the community. PROPER is a program developed by the Ministry of Environment and Forestry in 2002 that includes evaluation of a company’s performance by experts in the field.

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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4Q19 Results and Financial Highlight

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4Q19 Quarterly Result4Q19 Production Report 4Q19 Financial Statement


PT Vale reports Profit Before Income Tax (“PBIT”) of US$89.1 million for 2019