PT Vale Indonesia (INCO) Investor Day 2025 summary

Strategic Direction and Growth Plans

• Transitioning from a single-mine, single-smelter operation to three active mining sites and multiple smelters by 2026, with Bahodopi and Pomalaa ramping up and Sorowako continuing as a base.

• Major growth projects underway: Bahodopi, Pomalaa, and Morowali, with combined capex exceeding $6 billion and phased completions from late 2025 to 2027.

• Targeting 20 million tons combined production from Bahodopi and Pomalaa in 2026, with infrastructure and logistics expansions underway to support this growth.

• Exploration program aims to increase resource and reserve base by 2.5x by 2037, with annual reporting and aggressive drilling campaigns across Sulawesi.

• Strategic partnerships, notably with MIND ID and Huayou, support expansion and downstream integration.

Financial Performance and Guidance

• Revenue for 3Q25 rose to $278.6 million, a 27% increase from the previous quarter, driven by higher production and new saprolite ore sales.

• 9M25 revenue was $705 million, EBITDA $166 million, and net profit $52 million; cash and equivalents stood at $496 million.

• Cash cost for nickel matte managed below $9,100/ton YTD, with full-year guidance at $9,250–$9,500/ton; all-in sustaining costs expected below $12,000/ton.

• CapEx for 2026 focused on mining development, with $7 million for expansion and $155 million for sustaining CapEx, including furnace rebuilds.

• Profitability is expected to remain robust despite nickel price pressures, supported by operational efficiency and cost discipline.

Operational and Project Updates

• Nickel matte production reached 19,391 t in 3Q25, up 4% from the previous quarter; YTD production totaled 54,975 t, also up 4% year-on-year.

• Bahodopi commenced operations in July 2025, targeting 2.2 million WMT ore sales by year-end; Pomalaa to start commercial production in January 2026.

• Sorowako net production for 2025 expected at 71,234 tons, with a slight decrease to 67,000 tons in 2026 due to furnace rebuilds.

• Infrastructure upgrades, including new jetties and stockpiles, are on track to support increased logistics and ore delivery.

• Project delivery for all three sites is progressing ahead of or on schedule, with live updates and site visits encouraged.