JAKARTA (TheInsiderStories) - Nickel producer, PT Vale Indonesia Tbk (IDX: INCO) produced 15.19 metric tones (MT) of nickel in matte as of the first quarter (1Q) of 2021. The output dropped by 14 percent compared to 1Q of 2020 was 17.61 MT of nickel in matte, triggered by a maintenance activities in some of the factories.
Throughout 2021, the company have plans to produce up to 64,000 MT of nickel in matte. The company also intends to rebuild one of the electric furnaces. To achieve this year’ targets, the unit of Brazil’ Vale SA and PT Indonesia Asahan Aluminium, has allocated a capital expenditure of US$130 million in this year. The budget will be used for the reconstruction of furnace 4 and renovation of heavy mining equipment also mine development.
Vale also reported in the same quarter posted a net profit of $33.69 million, increased 16.37 percent compared to last year of $28.95 million, benefited from the increase in nickel prices. The revenues also rose 18.2 percent from $174.65 million to $206.5 million in the 1Q of 2021.
“We benefited from the increase in nickel prices in the first quarter of this year. At the same time, we have also managed to control our operational costs amid rising fuel and coal prices,” said President Director and CEO of the miner, Nico Kanter in a written statement, on Monday (04/26).
He continued, Vale‘ cash and cash equivalents amounted to $386.2 million, slightly down from the position as of Dec. 31, 2020 of $388.7 million. The issuer has spent around $38.5 million of the capital expenditure in the 1Q of 2021.
The analyst from BRI Danareksa Sekuritas, Stefanus Darmagiri, sees the selling price of nickel is expected to recover from $17,000 a MT of nickel in matte to $18,000 of nickel in matte in this year. The improving prospects for the company are also supported by a number of projects.
Vale is currently holding a feasibility study for the RKEF processing facility in Bahodopi, Central Sulawesi, collaborates with its partners from China to build nickel pig iron (NPI) and HPAL processing facilities made from nickel liomite in Pomalaa, Southeast Sulawesi. The delay in the construction of the electric furnace 4 will be the most crucial thing for the mining firm.
He noted, the solid nickel selling price to revise Vale’ net profit target from $132 million to $152 million and the revenue from $928 million to $983 million with sales volume estimated at 70,000 MT nickel in matte in this year. In 2022, the net profit was also revised up from $178 million to $181 million and the revenues projected of $1.05 billion. Vale is estimated to sell 75,000 MT of nickel in matte with an estimated average selling price of $18,000 MT nickel in matte.
Written by Editorial Staff, Email: theinsiderstories@gmail.com