PT Vale's Nickel production in the third quarter of 2022 (3T22) increased. This was revealed through the announcement of the financial performance achievements of PT Vale Indonesia Tbk (PT Vale or INCO) and its subsidiaries on Thursday, October 27, 2022.
PT Vale's financial performance was reportedly unaudited for the third quarter of 2022. The Company recorded production of 17,513 metric tons ("t") of nickel in matte, and sales of US$309.2 million in the quarter.
"I am pleased to report on the favorable third quarter of 2022 with no Lost Time Injury accidents and no injuries recorded," said Febriany Eddy, CEO and President Director of the Company in a statement, Friday, October 28, 2022.
Meanwhile, the average realization of nickel prices in the first nine months of this year was 41% higher year-on-year, pushing Revenue 27% higher in the first 9 months of 2022, compared to the same period the previous year.
However, due to volatility in the market, the company said it remains cautious about nickel price fluctuations for the rest of the year.
PT Vale's group cost of revenue increased from US$213.9 million in 2Q22 to US$258.4 million in 3Q22, primarily driven by higher energy costs and royalties.
When compared to the 2nd quarter of this year, the use of coal per metric ton of nickel in matte decreased by 28%.
This decrease in coal consumption was offset by the use of 40% higher HSFO permetric tons of natural matte nickel in the same period.
In response to the sharp increase in coal prices, after conducting a careful analysis, the Company decided to divert energy sources for burners from coal to HSFO in September 2022.
That way, the company is expected to incur lower energy costs than if it continues to use coal.
During the period, both HSFO, diesel and coal prices rose by 12%, 20% and 14%, respectively.
According to the report, PT Vale's EBITDA in 3Q22 was US$103.0 million, 37% lower than EBITDA in 2Q22 of US$163.4 million, due to the realization of lower nickel prices.
The company's cash and cash equivalents as of September 30, 2022 were US$624.3 million; 7% higher than cash and cash equivalents as of June 30, 2022 of US$585.9 million.
PT Vale then incurred capital expenditures of approximately US$29.9 million in the quarter, down from US$35.9 million in 2Q22.
"We expect to spend US$130 million for the whole of 2022," he explained.
Production projections for 2022 have been revised to a range of 61,000 t – 62,000 t, lower than previously targeted, mainly due to delays in the completion of the Furnace4 Rebuild project.
"The companywill strive to optimize production in the last quarter of this year while increasing productivity and operational cost efficiency. In doing so, we will not compromise our core values: Salvation of life is paramount, Respect for the preservation of the earth and our communities," he said. Red
Image source: PT Vale Indonesia
Source: https://referensia.id/produksi-nikel-pt-vale-meningkat-di-triwulan-tiga-2022/
