PT Vale Indonesia (INCO) Q1 2025 earnings summary

Executive summary

• Achieved a key milestone with the first commercial sale of approximately 80 kt of saprolite ore to a domestic buyer, diversifying revenue streams and supporting growth prospects.

• GEM Hong Kong International acquired a 51% stake in BNSI, reducing ownership to 49%.

• Disclosed mineral resources as of December 31, 2024, confirming status as Indonesia's largest nickel resource holder.

• Leadership changes include the appointment of Bernardus Irmanto as acting President Director.

• Completion of a 14% share divestment to MIND ID, making it the largest shareholder at 34%.

Financial highlights

• Q1 2025 revenue was $206.5 million, down 15% from 4Q24 and 10% year-over-year.

• Net profit for Q1 2025 surged to $22 million, up 252% year-over-year, driven by a $16.6 million gain on derivative asset revaluation.

• Cash and cash equivalents stood at $601.4 million, down from $674.7 million at year-end 2024.

• Unit cash cost of sales for nickel matte improved to $8,501 per ton, down 5% from 4Q24 and 9% year-over-year.

• Gross margin for Q1 2025 was 9.4%, with net margin at 10.6%.

Outlook and guidance

• Annual production target set at 71,234 tons, including planned shutdowns in Q4.

• Ongoing capex review is expected to yield approximately $800 million in cash savings over the investment cycle.

• The IUPK provides operational certainty through December 2035, with potential for further 10-year extensions.

• Expectation of increased ore sales in H2 2025, especially from Bahodopi, subject to RKAB approval.

• New profit-sharing obligations under IUPK require 10% of net income to be paid to the government.