PT Vale Indonesia (INCO) Q4 2025 earnings summary

Executive summary

• Demonstrated resilience and strategic execution in 2025, exceeding nickel matte production targets and expanding revenue streams with new product sales from Bahodopi and Pomalaa, reinforcing a foundation for sustainable long-term growth.

• Advanced major growth projects and maintained operational continuity despite market and infrastructure challenges, including oil pipeline leakage and disruptions.

• Strengthened sustainability initiatives, receiving multiple ESG and community development awards, and progressing toward IRMA certification.

• Completed a rights issue in June 2024, raising $112.3 million to support capital structure and growth.

• Built a stronger, more diversified, and future-ready platform for growth.

Financial highlights

• Revenue reached $990.2 million in 2025, up 4% year-over-year; EBITDA was $228 million, up 4%; net profit rose 32% to $76.1 million.

• Full-year nickel matte production totaled 72,027 metric tons (+1% YoY); Q4 2025 production was 17,000 metric tons, 12% below Q3 due to furnace rebuild.

• Ore sales reached 2.3 million tons, 60% above budget, mainly from Bahodopi; saprolite ore sales started at 2,316,023 wmt.

• Unit cash cost of sales for nickel matte was $9,339/t, the lowest in four years, despite higher costs from B40 and increased royalties.

• Cash and equivalents stood at $376 million, down 44% from 2024.

Outlook and guidance

• 2026 strategy focuses on delivering growth agenda, maintaining financial discipline, and unlocking profitability, with dual operations at Pomalaa and Bahodopi to drive scale and diversification.

• Pomalaa, Bahodopi, and Sorowako projects are on track; Pomalaa HPAL mechanical completion expected Q3 2026, full production by Q1 2027.

• Ore sales expected to remain a key revenue contributor, with a minimum of 8.1M WMT projected.

• Cash cost guidance for 2026 expected to be slightly higher but manageable within $10,000 per ton.

• CapEx commitments supported by a $500–750 million sustainability-linked loan, with a $250 million green shoe option.