PT Vale Indonesia (INCO) investor relations material

Executive summary

• Achieved strong Q2 and 1H26 performance with higher nickel matte production and sales, leveraging favorable nickel prices and operational improvements.

• Revenue for the six months ended June 30, 2026 reached $543.1 million, up from $426.7 million year-over-year, driven by higher nickel matte and ore sales.

• Net profit for the period was $104.4 million, a significant increase from $25.2 million in the prior year period.

• Gross profit margin improved to 28% from 7% year-over-year, reflecting higher sales and operational efficiency.

• Completion of Furnace 3 Rebuild in June 2026 supported increased output and efficiency.

Financial highlights

• Q2 2026 revenue reached $290 million, up 15% quarter-over-quarter, driven by higher volumes and prices.

• EBITDA rose 45% QoQ to $116 million; net profit increased 39% QoQ to $61 million.

• 1H26 revenue totaled $543 million (+27% YoY), EBITDA $196 million (+114% YoY), and net profit $104 million (+313% YoY).

• Cash and equivalents at $110.7 million, down from $376.4 million at year-end 2025, mainly due to capital expenditures and dividend payments.

• Total assets as of June 30, 2026 were $3.38 billion, up from $3.35 billion at December 31, 2025.

Outlook and guidance

• Additional RKAB approvals secured, supporting production continuity and growth.

• 2026 production quotas were approved at 100% for Sorowako, but only 30% for Pomalaa and Bahodopi, potentially limiting ore output; management plans to seek quota increases.

• Focus on maintaining cash cost at or below $10,000/t and strengthening liquidity.

• Major HPAL projects in Sulawesi are progressing, classified as National Strategic Projects.

• A new $500 million syndicated credit facility was secured in March 2026, with an option to increase to $750 million, supporting future growth.