Inco reports 87% jumps in Q2 net earnings

IDX-listed nickel miner PT International Nickel Indonesia Tbk (PTINCO) reported on Friday second quarter 2010 unaudited net earnings of US$142.6 million, an increase of 87% compared to US$76.2 million achieved in the first quarter of 2010.

The Company?s earnings in 2Q10 were driven by higher nickel in matte deliveries and increased average realized selling prices of nickel in matte.

Sales revenues were US$363.6 million for the three months ended June 30, 2010, an increase of 42% compared to US$255.6 million in 1Q10. This was mainly due to higher deliveries of nickel in matte and higher average realized prices. In 2Q10, deliveries totalled 20,010 metric tons compared to 18,021 metric tons in 1Q10. The Company recorded an average realized price for nickel in matte of US$18,172 per metric ton during 2Q10, compared to US$14,182 per metric ton in the previous quarter, an increase of 28%.

Production of nickel in matte in 2Q10 decreased 8.2% to 18,184 metric tons from 19,811 metric tons in 1Q10. This decrease was mainly due to a planned maintenance shutdown of one of our electric furnaces to repair the roof-top. Higher deliveries than production in 2Q10 were due to timing of shipments, which also resulted in higher nickel in matte inventories at the end of the previous quarter, it said.(alex)