Vale Indonesia
PT Vale Indonesia Tbk is Indonesia's largest nickel producer. The company is a subsidiary of Vale, the world's second biggest mining company, headquartered in Brazil. Vale Indonesia is a foreign investment company that explores, mines, processes and produces nickel in matte, an intermediate product, from lateritic ores at its mining and processing facilities near Sorowako on the island of Sulawesi. Vale's production is shipped - under long term contracts in US dollars - to Japan for refining. At end 2013, Vale Indonesia had proven mineral reserves amounting to 94.2 million metric tons (Mt) and probable mineral reserves of 33.3 million Mt.
Profile
| Industry Sector | Mining |
| Industry Sub Sector | Metal and Mineral Mining |
| Established | 25 July 1968 |
| Listed | 16 May 1990 |
| Listed Company Code | INCO |
| Listed Shares | 9,936,338,720 |
| Dividend | Yes |
| Major Shareholders (>5%) | Vale Canada Limited (58.73%) Sumitomo Metal Mining Co Ltd (20.09%) |
| Key Subsidiaries | – |
Stock Quote Vale Indonesia - INCO:
Business Summary
Vale Indonesia operates one of the world's largest integrated lateritic nickel mining and processing operations. Its annual production represents about 3 percent of total global nickel production. Sales agreements provide that eighty percent of Vale Indonesia's annual output is purchased by Vale Canada Ltd and twenty percent is purchased by Sumitomo Metal Co. Ltd (both these companies are Vale Indonesia's main shareholders). The price of Vale Indonesia's nickel products is set at the London Metal Exchange (LME) and is subject to global conditions. As such, Vale's revenue is directly linked to the price of nickel set by the LME.
The company's most significant cost is high sulphur fuel oil.
Since 2012 (up to the time of writing), Vale Indonesia has been in renegotiations with the Indonesian government to bring the company's Contract of Work (CoW) in line with provisions of the 2009 Mining Law. This new law requires all existing CoWs and Coal Contracts of Work (CCoWs) to be amended to harmonize them with the new law.
Vale Indonesia's Financial Highlights:
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Nickel in Matte Production¹ |
67,329 | 75,989 | 66,900 | 70,717 | 75,802 | 78,726 | 81,177 |
| Revenue | 761.0 | 1,276.3 | 1,242.6 | 967.3 | 921.6 | 1,038.1 | 789.7 |
| Gross Profit | 244.9 | 624.9 | 515.4 | 166.7 | 139.9 | 306.7 | 118.4 |
| Profit before Tax |
236.7 | 581.3 | 452.3 | 91.4 | 55.5 | 236.9 | 69.8 |
| Net Profit |
170.4 | 437.4 | 333.8 | 67.5 | 38.7 | 172.3 | 50.5 |
| Total Assets | 2,027.6 | 2,190.2 | 2,421.4 | 2,333.1 | 2,281.1 | 2,334.2 | 2,289.2 |
| Total Liabilities | 446.3 | 510.4 | 652.2 | 611.6 | 566.9 | 548.8 | 455.2 |
| EBITDA | 327.8 | 679.6 | 552.0 | 215.5 | 203.4 | 371.8 | 214.7 |
| Earnings per Share² | 0.017 | 0.044 | 0.034 | 0.007 | 0.004 | 0.017 | 0.005 |
| Dividend per Share² | n.a. | n.a. | 0.07 | 0.05 | 0.02 | 0.03 |
in million US dollar unless otherwise stated
¹ in tons
² in US dollar
Source: Vale Indonesia, Annual Report 2015
Future Projection Vale Indonesia's Financial Highlights:
| 2018 | 2019 | 2020F | 2021F | 2022F | |
| Revenue | 777.0 | 782.0 | 758.7 | 774.0 | 808.2 |
| EBITDA | 233.0 | 235.0 | 250.0 | 253.4 | 267.9 |
| Net Profit | 61.0 | 57.0 | 93.0 | 95.0 | 107.0 |
| ROAE (%) | 3.3 | 3.0 | 4.7 | 4.6 | 4.9 |
| ROAA (%) | 2.8 | 2.6 | 4.1 | 4.1 | 4.4 |
| P/E Ratio (x) | 41.7 | 44.3 | 26.6 | 26.5 | 22.6 |
| PBV (x) | 1.3 | 1.3 | 1.2 | 1.2 | 1.1 |
in million US dollar unless otherwise stated
Source: Trimegah Sekuritas (01.10.2020)
Location
Contact Details
Plaza Bapindo, Citibank Tower, 22nd Floor
Jalan Jenderal Sudirman Kav. 54-55
Jakarta - 12190
Phone: +62 21 524 9000
Fax: +62 21 524 9020
Email: pti_corsec@valeinco.com
www.vale.com/indonesia