PT Vale Indonesia Tbk · IDX:INCO
PT Vale Indonesia Tbk — Investor Presentation (December 2024)
34 slides from PT Vale Indonesia Tbk's investor presentation, Dec 12, 2024
Slide 1: Year-end Analyst Gathering: Embracing a New Baseline for Brighter Future
Public Information PT Vale Indonesia Tbk Year-end Analyst Gathering Embracing a New Baseline for Brighter Future December 12th, 2024
Slide 2: Agenda
Agenda: Part I Industry Outlook & Business Updates PT Vale Part II Growth Project Updates Part III Operational Updates Year End Analyst Gathering Part IV PT Vale’s Outlook Part V ESG Updates
Slide 3: Cautionary Note & Disclaimer
Cautionary Note & Disclaimer Cautionary Note on Forward-looking Statements This presentation may contain statements regarding the business of PT Vale Indonesia Tbk (the “Company” or “PT Vale”) that are of a forward- looking nature and are therefore based on management's assumptions about future deve
Slide 4: Learning together
Learning together Key Behaviours Ambitions Values • Obsession with safety and Levers A great company recognized by society for being: Our risk management. • Safety • Life matters most. • Benchmark in safety. • Open and Transparent • VPS Purpose • Act with integrity. dialogue. • Best in class reliabl
Slide 5: Part I Industry Outlook & Business Updates
Part I Industry Outlook & Business Updates
Slide 6: Nickel market will grow 5% CAGR until 2030
Nickel market will grow 5% CAGR until 2030, Stainless Steel driving majority volume today, but Battery has the highest growth Global forecasted nickel demand (2023-2030) – in kT CAGR CAGR Sectors Growth driver '20-'23 '23-'30 Rising stainless steel industry from China, Stainless Steel 5% 2% growing
Slide 7: Aligning with EV battery industry shifts by collaborating with OEMs
With industry shifts in EV battery trends, PT Vale is aligning with these changes by collaborating with OEMs to strengthen its position in key downstream markets Upstream Midstream Downstream End of Life Raw material Raw material Active mater. Cell & Pack Battery Battery extraction processing produc
Slide 8: Indonesia, Australia & Brazil account for 75% of global reserves
Indonesia, Australia & Brazil account for 75% of global reserves With additional reserves from Bahodopi and Pomalaa makes PT Vale the largest nickel reserves in country The ranking based on Proven & Probable contained nickel (kt)2 1,400 Top 10 Reserves & Resources by Base Case Operation 1,200 1,293
Slide 9: Industry Collaboration: Partnering with top players to accelerate growth
Industry Collaboration | Partnering with top players to Accelerate Growth PT Vale & GEM signing ceremony in Beijing, China on November 10, 2024 Realizing our dream - Green mining, green Manufacturing and green product: • Net Zero from Day 1 – 60,000 t nickel in MHP, capex intensity ~$21k/t (HPAL) •
Slide 10: PT Vale's Credit Rating
S o u r ce: B i s n is.co m PT Vale’s Credit Rating Upgrade: an important strategic milestone • Reflect robust financial management and strategic support from MIND ID. • Supports Indonesia's goals for mineral down streaming and a strong EV ecosystem, aligned with PT Vale’s long-term sustainability v
Slide 11: Part II Growth Project Updates
Part II Growth Project Updates
Slide 12: Post divestment, further developing mining areas and downstreaming
Post divestment, we aim to further develop our mining areas and down streaming opportunities Morowali Sorowako Limonite Mine JV – HPAL Annual Prod (WMT): Capacity Annual: 5,500,000 Saprolite 60 ktpa 10,400,000 Limonite Capex: USD 1,4 Mine JV – HPAL Capex: USD 600 Million Billion Phase 1: USD 399 mio
Slide 13: Mines & JV construction are underway as per schedule
Several pictures of our growth projects Mines & JV construction are underway, each showing progress as per schedule Morowali Pomalaa Sorlim ✔ Overall construction for Bahodopi mine is on ✔ Overall construction for Mine is ongoing with ✔ The construction is ongoing with progress schedule, with progre
Slide 14: Bahodopi Mine Project Pictures
Bahodopi Mine Project Pictures Sediment Pond #4 Overpass Port Construction 87% 53% 63% MHR 120 ADT for Pre-stripping WOC 85% 41%
Slide 15: Morowali HPAL Project Pictures
Morowali HPAL Project Pictures Overall Progress Batch Plant Temporary Mess & Office for Construction Earth escalation Site Clearance Slag Yard Living Area and Reservoir
Slide 16: Pomalaa Mine Progress
Pomalaa Mine NAR PHASE-1 (STA 0+850 to STA 1+450) NAR PHASE-2 (STA 0 to STA 0+400) NAR PHASE-3 (STA 0+400 to STA 0+850) Progress 95.94% Progress 61.24% Progress 88.01% MHR STA 6+000 to 6+850 MHR STA 6+850 to 8+000 MHR STA 11+500 to 12+000 Progress 54.00% Progress 87.00% Progress 77.00%
Slide 17: Pomalaa HPAL Project Pictures
Pomalaa HPAL Living Area Progress Land Levelling FPP Slope Protection (Shotcrete) – KM 5 SAR SAR Progress
Slide 18: Sorowako Limonite Project Pictures
Sorowako Limonite Temporary Facility Construction Mobile Equipment Material Slag as Paving Block Laydown preparation for Construction Camp Traffic Mgt Plan Environment In-mine stockpile & Stockpile Implementation Monitoring Management Traffic Management Office Area FPB03 STP Mgt Traffic Management Q
Slide 19: Part III Operational Updates
Part III Operational Updates
Slide 20: Safety statistics lower than target
Our overriding commitment on safety was reflected with the quarter's statistic that was lower than target Seconded/Contractor 2.56 Bootcamp 2.39 1.81 1.62 1.50 1.28 1.24 2.25 2.17 0.95 0.80 1.62 0.67 0.64 0.55 0.58 0.61 1.38 0.51 0.48 1.25 0.81 0.98 Night Shift Gemba 0.25 0.79 0.17 0.19 0.22 0.62 0.
Slide 21: Nickel in matte production up in 3Q24 and 9M24
Production in 3Q24 & 9M24 showed a commendable performance with increases of 9% q-on-q and 2% y-on-y, respectively Our target is to deliver safe and sustainable production throughout the year of ~70,800 t of nickel in matte 70,728 This positive 19,084 outcome can be attributed to the slight improvem
Slide 22: Energy consumption efficiency and lower energy costs
Throughout the quarter, controlling the energy leads to improved consumption efficiency and lower energy costs 3Q24 2Q24 9M24 9M23 % QoQ % YoY Volume/unit production 21.9 21.3 22.2 24.4 3 (9) (barrels/T) HSFO Average price per barrel $92.07 $87.31 $88.30 $80.52 5 10 Volume/unit production 946.5 1,04
Slide 23: Part IV PT Vale's Outlook
Part IV PT Vale's Outlook
Slide 24: Competitive with positive margin despite nickel price volatility
Remains competitive with positive margin, even during the nickel price volatility Focus and discipline in 24,500 managing our cost of 22,000 revenue, where commodity prices and 19,500 maintenance costs are 17,000 the main factors 14,500 12,948 4Q24 est. 12,000 12,583 9,500 9,649 9,234 7,000 4,500 Av
Slide 25: PT Vale's development strategies to unlock its potential
PT Vale’s development strategies to unlock its potential Achieving ambitious sustainability PT Vale is firmly dedicated to targets and adhering to the highest level establish itself as a go-to supplier Strengthening business diversification of mining practice within the global nickel chain Viable sc
Slide 26: Optimizing Sorowako and delivering growth projects
PT Vale aims to explore and optimize its resources value by optimizing existing Sorowako operation and delivering its growth projects Area Project Nickel Capacity (ktpa Ni) Plan 1 Sorowako Matte PT Vale 75 Optimize 1 Sorowako 2 Sorowako HPAL JV 60 Tanamalia HPAL JV 60 3 Develop 2 60 JV Bahodopi Baho
Slide 27: Ore sales as quick wins to improve Company's value
Ore sales will be the quick wins to improve Company’s value SAPROLITE (in ‘000 wmt) LIMONITE (in ‘000 wmt) North Kalimantan Pomalaa Pomalaa 34,142 34,299 Bahodopi Bahodopi East Weda 12,942 30,076 Bay Sorowako Kalimantan Morowali 9,893 9,883 21,150 21,150 Obi 16,024 Island 7,721 8,685 6,000 6,000 Kon
Slide 28: Cash generating capability anticipated to grow 3x in 5 years
Cash generating capability anticipated to grow 3x in 5 years 5% 0% 2% 2% Revenue Composition (%) Matte 40% 49% Nickel Ore 58% 48% MHP 1 95% 2025 2027 2029 Cash Flow from operation & 721 Investing, (USDM) 785 Cash From Operations1 610 273 182 Investments (Own operations) -415 -195 -50 0 -668 0 Invest
Slide 29: Part V ESG Updates
Part V ESG Updates
Slide 30: Operating in harmony with the environment
Throughout the year, we commit to operating in harmony with the environment and embracing sustainable practice GHG Intensity SO2 intensity Reclamation (tCO2e/ton Ni) (kg S / kg Ni) (Ha) 2024 Goal: 28.41 max 2024 Goal: 0.80 max 2024 Goal: 265.00 Prepare for YTD Nov 2024 YTD Nov 2024 YTD Nov 2024 Gold
Slide 31: Lower ESG risk rating than other Indonesian players
Differentiated positioning | PT Vale has a lower ESG risk rating than other Indonesian domestic players 45.8 Sustainalytics risk rating as of Sep/Oct’24 42.1 40.5 36.8 34.9 29.2 29.4 29.4 27.6 28.1 Last Update May 24 May 24 May 24 Sept 24 Oct 24 May 24 Jun 24 Jun 24 May 24 Feb 24 Indonesian Players
Slide 32: Awards and Recognition
Awards and Recognition August 2024 7 achievements from Eco-tech Pioneer and Sustainability Award (ESA) 2024 from Universitas Diponegoro (UNDIP) October 2024 A trophy from Subroto Award 2024 in the category of Community Development and Empowerment Performance (PPM) from MEMR August 2024 Appreciation
Slide 33: There is no future without mining, without caring about the future
“There is no future without mining, and there can be no mining without caring about the future.”
Slide 34: Contact us
Contact us Investor Relations PT Vale Indonesia Tbk Phone: +62 21 524 9000 Web: www.vale.com/indonesia Email: ptvi.investorrelation@vale.com
PT Vale Indonesia — Investor Presentation (December 2024) on 6ix