INCO - Reporting higher production volume

Vale Indonesia (INCO) posted 16,922 mt and 33,691 mt nickel matte production volume in 2Q23 and 1H23, respectively, given furnace 4 re-development and furnace 2 fixing, reaching its 2Q23 production volume target. Moreover, INCO continued to conduct an exploration activities in 1H23 focusing on consession karya contract; Sorowako Block & Sorowako Outer Area, Bahodopi and Pomalaa. (Source : Bisnis Indonesia) Comment : We view that 2Q23 higher production volume by +35% and +28%, should potentially increase its revenue amidst slumped global nickel prices. However, we see that shutdown strategy on Klin 1 and Furnace 1 starting on last June, will have declined its production output to the following year of July 2023.