Vale books $20m in loss in H1
Thursday, July 28 2016 - 10:38 AM WIB
IDX-listed mining firm PT Vale Indonesia Tbk announced on Thursday a loss of US$20 million in the first half of the year (H1 2016) as against a profit of $41.8 million in H1 2015.
Revenue dropped by 39.8 percent to $246.8 million in H1 2016 from $409.7 million in H1 2015, the firm said in a press statement.
EBITDA in Q2 2016 was US$26.1 million, which is higher than EBITDA in Q1 2016 of US$9.2 million. The Company?s cash and cash equivalents as of June 30, 2016 and March 31, 2016 were US$257.5 million and US$232.6 million, respectively.
In Q2 2016 PT Vale disbursed approximately US$16.8 million in capital expenditures, which is about 65 percent of capital expenditure spending in Q1 2016. PT Vale will continue to exercise prudent control of its spending to preserve cash.
In 2016, PT Vale plans to produce approximately 80,000 t of nickel in matte. At the same time, the Company will maintain its focus on improving costs to sustain competitiveness in the long run without compromising the company?s foremost value: Life Matters Most.
Nickel in matte production and sales volumes were about 15 percent and 23 percent higher respectively than the production and sales volumes realized in Q1 2016.
?Our average price in this quarter was 3 percent higher than the average price in the previous quarter,? reported Nico Kanter, CEO and President Director of the company. ?While we were glad to realize that and see the recent nickel price rally on the London Metal Exchange, we remain focused on our efforts to improve efficiencies and reduce costs.?
The company?s cost of revenue per metric ton of nickel matte sold declined by 9 percent from the previous quarter, driven mostly by reductions in major production cost components. Supplies and employment costs, which account for about 25 percent and 14 percent of production costs, were 3 percent and 7 percent lower, respectively.
| ? | 2Q16 | 1Q16 | 1H16 | 1H15 |
| Nickel in matte production1 | 19,362 | 16,894 | 36,256 | 36,727 |
| Nickel matte deliveries1 | 20,245 | 16,427 | 36,672 | 37,046 |
| Average realized price2 | 6,823 | 6,618 | 6,731 | 11,058 |
| EBITDA3 | 26.1 | 9.2 | 35.3 | 129.7 |
| Revenue3 | 138.1 | 108.7 | 246.8 | 409.7 |
| Earnings3 | (4.6) | (15.4) | (20.0) | 41.8 |
| Earnings per share4 | (0.0005) | (0.0016) | (0.0020) | 0.0042 |
| 1 metric ton (t), 2 US$ per t, 3 US$ million, 4 US$ | ||||
Editing by Johannes Simbolon