PT Vale Indonesia Tbk (PT Vale) held its 2024 annual public expose as a demonstration of transparency and accountability to the public, particularly to its shareholders.
Similar to the previous year, the public expose was conducted online as part of the Public Expose Live 2024 event organized by the Indonesia Stock Exchange (IDX).
During the presentation, PT Vale reiterated its operational achievements and financial performance for the S2 2024 and the S1 2024, as previously published.
In S2 2024, production volume decreased by 9 percent compared to the strong performance achieved in S1 2024. "This is a testament to the company's commitment to quality and maintenance planning, which is crucial for the long-term success of our operations," said PT Vale Indonesia CEO Febriany Eddy in an official statement on Monday, August 26, 2024.
Febriany noted that on a year-on-year basis, PT Vale's production in S2 2024 was slightly lower by 2 percent, reflecting consistent performance. However, PT Vale's production in 1H24 was 3 percent higher compared to 1H23. This growth resulted from PT Vale's planned maintenance strategy and higher calcine output in 2024.
"We are optimistic about our production prospects and expect smooth operations through the end of the year. Our goal is to achieve a production target of approximately 70,800 metric tons of nickel in matte in 2024, up from last year's target," Febriany stated.
In S2 2024, PT Vale's sales reached 17,505 metric tons of nickel matte, generating revenue of USD 248.8 million. This figure represents an 8 percent increase compared to the previous quarter, driven by higher average realized nickel prices in S2 2024.
The average realized nickel price increased by 12 percent to USD 14,214 per ton in S2 2024, up from USD 12,651 per ton in S1 2024.
"Despite uncertain market conditions, we remain committed to optimizing production capacity, improving efficiency, and reducing costs," Febriany Eddy reported.
Febriany explained that in line with the decline in shipments during the quarter, PT Vale's cost of revenue decreased from USD 209.8 million in S1 2024 to USD 207.3 million in S2 2024. The reduction in total cost of revenue was also supported by lower fuel and coal consumption in S2 2024, along with a decrease in coal prices.
