INCO – Projected performance improvement after divestment and extension of IUPK

INCO – Projected performance improvement after divestment and extension of IUPK Vale Indonesia (INCO) projects improved performance after concerns related to divestment subside and a certainty regarding the extension of the IUPK. The renewal permit granted after INCO agreed to divest 14% of its shares to MIND ID. The divestment process is targeted to be completed in July 2024 with approval from OJK. The divestment payment will be made by MIND ID worth USD399 mn, agreed upon by MIND ID and PTVI at a price of IDR3,050 per share. In addition, it is estimated that the improvement in INCO's performance will also supported by the continued increase in nickel LME prices and the decline in oil and coal prices that suppress costs. Note that, INCO uses the LME nickel price as a reference in determining the selling price of nickel. INCO divests nickel production to offtakers, in this case to global shareholders, VCL and SMM. The agreement is carried out in a long-term contract. (Source: Investor Daily)