mining company PT Vale Indonesia Tbk (INCO) recorded an annual net profit growth of 36.89% to USD 274.33 million, equivalent to around IDR 4.35 trillion throughout 2023.
The increase in Vale Indonesia’s (INCO) net profit cannot be separated from the increase in company sales.
Based on the financial report quoted on Monday (12/2/2024), Vale Indonesia (INCO) sales rose 4.48% on an annual basis to USD 1.23 billion by the end of 2023.
A total of USD 985.81 million came from sales to Vale Canada Limited (VCL) and USD 246.45 million from sales to Sumitomo Metal mining.
Vale Indonesia (INCO) recorded a 2.23% annual increase in the cost of goods sold to USD 885.24 million. Nevertheless, this increase could be compensated by other financial items.
Among others, the profit on fair value recognition of derivative assets is worth USD 24.69 million. The financial item came from additional participation rights in the investment in PT Kolaka Nickel Indonesia.
Price Agreement
The Ministry of State-Owned Enterprises (SOEs) has again provided news about the negotiation process for the price of 14% of the shares invested by PT Vale Indonesia Tbk (INCO) in the state-owned mining holding company, PT Mineral Industri Indonesia (MIND ID).
Deputy Minister of SOEs Kartika Wiroatmodjo said the negotiation process is still being discussed through Minister of Energy and Mineral Resources Arifin Tasrif, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, and Vale.
“We should agree within this week,” Tika said in Jakarta on Wednesday (7/2/2024), although she did not disclose how much the negotiation of the share price agreement was.
The negotiations are still in limbo until now, from what was originally targeted to be completed in the middle of last year.
However, it was recently reported that MIND ID is asking for a price of IDR 2,800/share, almost half or around 40% of INCO’s current average market price of over IDR 4,000/share.
The Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, only responded that the government is still discussing the matter.
“We are still discussing it,” said Dadan when met recently. “This is not a one-day discussion, yes. [The point is] we continue to find the best way for the country.”
Image source: Bloomberg / Dimas Ardian
Source: https://www.bloombergtechnoz.com/detail-news/29425/vale-inco-umumkan-laba-rp4-t-di-tengah-isu-harga-divestasi
Source https://djakarta-miningclub.com