PT Vale Indonesia (INCO) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, was $708.6 million, down 24% year-over-year, with all sales to related parties under long-term contracts.

• Net profit attributable to owners for the period was $51.1 million, a significant decrease from $238.3 million in the prior year.

• The company completed a major share divestment to MIND ID, fulfilling regulatory obligations and securing a new Special Mining Business License (IUPK) valid through 2035.

Financial highlights

• Gross profit fell to $80.2 million from $286.9 million year-over-year, mainly due to lower revenue and higher cost per unit.

• Operating profit dropped to $55.1 million from $252.3 million year-over-year.

• Net profit for the period was $51.1 million, with basic earnings per share of $0.0049, compared to $0.0240 in the prior year.

• Cash and cash equivalents increased to $771.2 million from $698.8 million at year-end 2023.

• Total assets rose to $3.11 billion from $2.93 billion at year-end 2023.

Outlook and guidance

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

• The company is committed to major investment projects in Sulawesi, including HPAL processing facilities, as part of its growth strategy.

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