PT Vale Indonesia Tbk : Q2 Marks Another Profitable Quarter in 2022

Q2 marks another profitable quarter in 2022

Jakarta, July 28th, 2022 - PT Vale Indonesia Tbk ("PT Vale" or the "Company", IDX Ticker: INCO) and its subsidiaries (jointly the "Group") today announced its unaudited results for the second quarter of 2022 ("2Q22"). Profit for the 2Q22 was US$82.8 million or 22% higher than profit recorded in the previous quarter.

"Our profit has remained positive in this tough commodity cycle as we are focus on our efforts to improve efficiencies and reduce costs. In addition, the Company has been benefited from the favourable nickel price environment in this quarter," said Febriany Eddy, CEO and President Director of the Company. Our production volume in first half of 2022 ("1H22") was 13% lower than production in 1H21 due to the execution of the Furnace 4 rebuild project. The rebuild work itself has been completed and the furnace heating up has been started since June 18, 2022.

"In related to safety, there was no Lost Time Injury accident during 2Q22, and the number of recordable Injuries decreased in line with the completion of Furnace 4 rebuild. We will continue to do routine management agenda such as intensifying Leadership in the Field, increasing safety supervision and housekeeping at workplace", said Febriany Eddy commenting the achievement.

The Group realized a 40% higher average selling price in 2Q22, resulting in 40% higher revenues in 2Q22 compared to last quarter. The Group's cost of revenue increased from US$142.3 million in 1Q22 to US$213.9 million in 2Q22, primarily driven by higher commodities prices and royalties.

The following table provides details on PT Vale's High Sulphur Fuel Oil ("HSFO"), diesel and coal consumption and average price:

	2Q22	1Q22	1H22	1H21
HSFO volume (barrels)	223,739	221,779	445,518	640,500
HSFO average price per barrel	US$88.12	US$73.06	US$80.63	US$53.00
Diesel volume (kilolitres)	14,424	14,787	29,211	33,984
Diesel average price per litre	US$0.82	US$0.67	US$0.74	US$0.45
Coal volume (t)	79,162	91,793	170,955	174,256
Coal average price per t (*)	US$386.39	US$258.97	US$317.97	US$120.14

(*) Price in DMT (Dry Metric Ton) and CFR (Cost & Freight) basis

The table shows a trend of decreasing fuels and coal consumption on a year-on-year basis due to the execution of the Furnace 4 rebuild. The lower coal consumption in 2Q22 was offset by the higher HSFO consumption. In 2Q22, HSFO, diesel and coal prices increased significant by 21%, 22% and 49%, respectively, compared to 1Q22. Fuels and coal represent some of PT Vale's largest production cost items.

[ 1 ]

PT Vale Indonesia Tbk

Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T (62) 21 524 9000 F.(62) 21 524 9020

Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020

Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia

PT Vale's EBITDA in 2Q22 was US$163.4 million, which was higher than the EBITDA in 1Q22 of US$116.2 million. The Company's cash and cash equivalents as of June 30, 2022 and March 31, 2022 were US$585.9 million and US$518.0 million, respectively. In 2Q22 PT Vale disbursed approximately US$44.8 million in capital expenditures, which was about 6% higher than capital expenditure spending in 1Q22. PT Vale will continue to exercise prudent control of its spending to preserve cash.

The Company will continue to maintain its focus on improving productivity and cost efficiency to sustain competitiveness in the long term without compromising its foremost values: Life Matters Most, Respect Our Planet and Communities.

Readers are encouraged to review the Group's results. Operational achievements as well as unaudited financial results are summarized on the following pages.

For further information, please contact: Bernardus Irmanto, Chief Financial [e-mail] or visit our website at www.vale.com/indonesia

[ 2 ]

PT Vale Indonesia Tbk

Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020

Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020

Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia

PT Vale Indonesia Tbk

Production and Financial Highlights

		2Q22	1Q22	1H22	1H21
	Nickel in matte production1	12,567	13,827	26,394	30,246
	Nickel matte deliveries1	13,527	13,486	27,013	30,692
	Average realized price2	24,355	17,432	20,899	13,520
	EBITDA3	163.4	116.2	279.6	161.2
	Revenue3	329.4	235.1	564.5	414.9
	Profit3	82.8	67.6	150.4	58.8
	Earnings per share4	0.0083	0.0068	0.0151	0.0059
1	metric ton (t)
2 US$ per t
3	US$ million
4	US$

[ 3 ]

PT Vale Indonesia Tbk

Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020

Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020

Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia

PT Vale Indonesia Tbk and its subsidiaries

Interim Consolidated Statements of Profit or Loss

and Other Comprehensive Income

(In thousands of US$ except basic earnings per share)

		2Q22			1Q22			1H22			1H21
Revenue	329,451	235,085	564,536	414,947
Cost of revenue	(213,957)		(142,356)		(356,313)		(329,138)
Gross profit	115,494	92,729	208,223	85,809
Operating expenses	(4,448)	(4,325)	(8,773)	(2,057)
Other income	942	249	1,191	1,970
Other expenses	(3,580)		(1,544)		(5,124)		(5,257)
Operating profit	108,408	87,109	195,517	80,465
Finance income	1,275	734	2,009	1,310
Finance costs	(1,092)		(1,104)		(2,196)		(2,022)
Net finance income/(costs)	183		(370)		(187)		(712)
Profit before income tax	108,591	86,739	195,330	79,753
Income tax expense	(25,784)		(19,091)		(44,875)		(20,967)
Profit for the period	82,807	67,648	150,455	58,786
Other comprehensive
income/(loss)
Items that will not be reclassified to
profit or loss:
− Changes resulting from actuarial
remeasurement of post-
employment benefit liabilities	-	-	-	-
− Income tax on other
comprehensive income	-	-	-	-
Total other comprehensive
Income/(loss)	-	-	-	-
Total comprehensive
income for the period	82,807	67,648	150,455	58,786
Profit for the period
attributable to:
Owners of the parent entity	82,807	67,648	150,455	58,786
Non-controlling interest	-	-	-	-
		82,807			67,648			150,455			58,786
Total comprehensive income for
the period attributable to:
Owners of the parent entity	82,807	67,648	150,455	58,786
Non-controlling interest	-	-	-	-
		82,807			67,648			150,455			58,786
Earnings per share
- Basic and diluted
(in full amount of US Dollars)		0.0083		0.0068		0.0151		0.0059

[ 4 ]

PT Vale Indonesia Tbk

Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T (62) 21 524 9000 F.(62) 21 524 9020

Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020

Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia

PT Vale Indonesia Tbk and its subsidiaries

Interim Consolidated Statements of Financial Position

(In thousands of US$)

		June 30,		March 31,		December 31,
		2022	2022	2021
Assets	(Unaudited)		(Unaudited)		(Audited)
Cash and cash equivalents	585,920	518,022	508,327
Trade receivables - Related parties	97,338	88,113	101,987
Inventories	194,755	202,793	162,023
Prepaid taxes - Corporate income tax	-	2,342	-
- Other taxes	74,609	67,015	58,148
Prepayments and advances	14,951	3,477	3,521
Other current financial assets	3,056		2,523		2,570
Total current assets	970,629		884,285		836,576
Restricted cash	73,044	73,044	49,869
Prepaid taxes - Corporate income tax	5,623	8,742	7,808
- Other taxes	46,109	52,855	55,120
Fixed assets	1,517,271	1,520,203	1,518,963
Other non-current financial assets	4,539		4,783		4,492
Total non-current assets	1,646,586		1,659,627		1,636,252
Total assets	2,617,215	2,543,912	2,472,828
Liabilities and Equity
Trade payables - Related parties	85	195	135
- Third parties	126,090	122,536	122,109
Accruals	25,524	27,026	19,842
Short-term employee benefit liabilities	11,543	14,067	21,638
Taxes payable - Corporate income tax	2,439	-	-
- Other taxes	1,849	3,822	1,973
Lease liabilities	1,465	1,413	1,441
Share-based payment liabilities	331	39	26
Other current financial liabilities	1,656		1,447		1,266
Total current liabilities	170,982	170,545	168,430
Long-termpost-employment benefit
liabilities	26,404	26,738	26,329
Deferred tax liabilities	41,922	44,284	42,810
Lease liabilities	2,691	3,041	3,310
Provision for asset retirement	70,300		77,195		77,488
Total non-current liabilities	141,317		151,258		149,937
Total liabilities	312,299	321,803	318,367
Equity	2,304,916	2,222,109	2,154,461
Total liabilities and equity		2,617,215		2,543,912		2,472,828

[ 5 ]

PT Vale Indonesia Tbk

Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020

Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020

Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia