PT Vale Indonesia (INCO) Q2 2025 earnings summary

Executive summary

• Production volume increased in 2Q25, reflecting reliable operational execution and new leadership appointments on July 28, 2025, enhancing diversity and experience.

• Achieved new nickel matte pricing terms and approval to sell 2.2 million tons of saprolite ore from Bahodopi.

• Revenue for 1H25 was $427M, down 11% year-over-year, mainly due to lower nickel matte sales volume and prices.

• Net profit attributable to shareholders was $25.2M, a significant decrease from $37.3M in the prior year period.

• Completed a major divestment, with MIND ID becoming the largest shareholder at 34% after acquiring shares from VCL and SMM.

Financial highlights

• 1H25 revenue was $427M, down 11% year-over-year; EBITDA at $92M, down 26%; net profit at $25M, down 32%.

• Cash and equivalents stood at $507M, down 39% year-over-year.

• Operating profit dropped to $9.0M from $48.9M year-over-year.

• Unit cash cost of sales for nickel matte improved by 6% year-over-year to $8,944.

• Total assets stood at $3.17B, with equity at $2.73B and total liabilities at $442.8M as of June 30, 2025.

Outlook and guidance

• Stronger baseline expected for 2H25 with new nickel matte terms and commercial ore sales.

• Revenue uplift forecasted in 2H25 from improved nickel matte pricing and saprolite ore sales at premium prices.

• The company secured a Special Mining Business License (IUPK) in May 2024, extending operational certainty through at least 2035.

• Ongoing investment commitments include HPAL projects in Sulawesi, with construction progressing and projects designated as National Strategic Projects.

• Focus on margin recovery and operational stability following major maintenance in 1H25.