Posted on 01 Nov 2023
Vale Indonesia, the Indonesian subsidiary of Brazilian miner Vale, has reported lower earnings in the third quarter due to lower average realised nickel prices, Kallanish learns.
The company achieved earnings of $52.6 million in the third quarter, representing a decrease compared to the $70.4 million achieved in the second quarter. Q3 revenue also declined to $278.9m, from $295.8m in the previous quarter, after a 6% drop in prices to average $16,204/tonne.
This was despite a 6% increase in production to 17,953 t from 16,922 in the previous quarter, underpinned by the implementation of an effective maintenance strategy coupled with “exceptional” operational performance.
In the July-September quarter, capex rose to $65.7 million, from the $60.8 million spent in the second quarter. This increase was primarily allocated to sustaining and growth spending.
As for the nine-month period, the group’s earnings increased to $221.1m from $168.4m a year ago, while its revenue rose to $937.9m from $873.8m. On an annual basis, the average realised price shrunk 10% in the nine-month period. However, Vale reported a 7% increase in sales driven by higher deliveries of nickel in matte.
The company says it will continue to maintain its focus on improving productivity and cost efficiency to sustain competitiveness in the long term. It’s supporting Indonesia’s EV supply chain, having recently completed the evaluation and approval of the Pomalaa mine – a $925 million investment that will supply ore to the Pomalaa high-pressure acid leaching (HPAL) plant in Southeast Sulawesi. The project is part of a collaboration agreement with Huyaou and Ford.
Source:Kallanish
