Profile

Industry Sector Mining
Industry Sub Sector Metal and Mineral Mining
Established 25 July 1968
Listed 16 May 1990
Listed Company Code INCO
Listed Shares 9,936,338,720
Dividend Yes
Major Shareholders (>5%) Vale Canada Limited (58.73%)
Sumitomo Metal Mining Co Ltd (20.09%)
Key Subsidiaries

Stock Quote Vale Indonesia - INCO:

Business Summary

Vale Indonesia operates one of the world's largest integrated lateritic nickel mining and processing operations. Its annual production represents about 3 percent of total global nickel production. Sales agreements provide that eighty percent of Vale Indonesia's annual output is purchased by Vale Canada Ltd and twenty percent is purchased by Sumitomo Metal Co. Ltd (both these companies are Vale Indonesia's main shareholders). The price of Vale Indonesia's nickel products is set at the London Metal Exchange (LME) and is subject to global conditions. As such, Vale's revenue is directly linked to the price of nickel set by the LME.

The company's most significant cost is high sulphur fuel oil.

Since 2012 (up to the time of writing), Vale Indonesia has been in renegotiations with the Indonesian government to bring the company's Contract of Work (CoW) in line with provisions of the 2009 Mining Law. This new law requires all existing CoWs and Coal Contracts of Work (CCoWs) to be amended to harmonize them with the new law.

Vale Indonesia's Financial Highlights:

     2009    2010    2011    2012    2013    2014    2015
Nickel in Matte
Production¹
  67,329   75,989   66,900   70,717   75,802   78,726   81,177
Revenue    761.0  1,276.3  1,242.6    967.3    921.6  1,038.1    789.7
Gross Profit    244.9    624.9    515.4    166.7    139.9    306.7    118.4
Profit before Tax
   236.7    581.3    452.3     91.4     55.5    236.9     69.8
Net Profit
   170.4    437.4    333.8     67.5     38.7    172.3     50.5
Total Assets  2,027.6  2,190.2  2,421.4  2,333.1  2,281.1  2,334.2  2,289.2
Total Liabilities    446.3    510.4    652.2    611.6    566.9    548.8    455.2
EBITDA    327.8    679.6    552.0    215.5    203.4    371.8    214.7
Earnings per Share²    0.017    0.044    0.034    0.007    0.004    0.017    0.005
Dividend per Share²     n.a.     n.a.     0.07     0.05     0.02     0.03

in million US dollar unless otherwise stated
¹ in tons
² in US dollar
Source: Vale Indonesia, Annual Report 2015

Future Projection Vale Indonesia's Financial Highlights:

      2013      2014     2015     2016F    2017F
Revenue    921.6    1,038.1     790.0     558.0     586.0
Net Profit
    38.7     172.3      52.0      26.0      37.0
EBITDA    236.0     411.9     228.0     193.0     205.0
P/E Ratio (x)     30.6      6.0      17.4      33.9      25.2
PBV (x)      0.7      0.6       0.5       0.5       0.5
EV/EBITDA (x)      5.1      2.2       3.8       4.4       4.3
Dividend Yield (%)      0.0      1.0      10.4       3.8       1.7

in million US dollar unless otherwise stated
Source: Panin Sekuritas (04/04/2016)

Location

Contact Details

Plaza Bapindo, Citibank Tower, 22nd Floor
Jalan Jenderal Sudirman Kav. 54-55
Jakarta - 12190
Phone: +62 21 524 9000
Fax: +62 21 524 9020
Email: pti_corsec@valeinco.com
www.vale.com/indonesia