PT Vale Indonesia Tbk

PT Vale reported full-year 2025 nickel matte production of 72,027 metric tons, versus 71.3 in 2024. Quarterly output in Q4 2025 was 17,000 metric tons, about 12% below Q3 2025, due in part to a furnace rebuild that began in November 2025 and is targeted for completion by May 2026. Saprolite ore sales reached 2.3 million tons, about 60% above budget, with roughly 300,000 tons from Pomalaa and the balance mostly from Bahodopi. The CFO said unit cash cost of sales was 9,339, EBITDA was 228 million, up 1% year over year, and net profit was 76 million for 2025. For 2026, management guided to slightly higher cash costs versus last year because of the furnace rebuild, but said costs should remain manageable and that they are targeting clear earnings improvement from 2026 onward. They also said the company ended 2025 with a good cash balance and now has a USD 500 million sustainability-linked loan facility, plus a USD 250 million green shoe option, to fund growth capex.

The CEO framed 2025 as a year of resilience, discipline, and execution, emphasizing that Vale exceeded nickel matte production targets while keeping cash costs low. He highlighted the strategic importance of diversifying beyond a single product through Bahodopi and Pomalaa, and said the company is building a more future-ready, multi-source production base. Looking into 2026, his tone was constructive and confident, with a focus on unlocking profitability through cost control, energy efficiency, and scaling new projects.

The CFO said 2025 was challenged by weaker nickel pricing, B40 implementation, and other cost pressures, but the company still delivered improved operating results. He cited unit cash cost of sales of 9,339, EBITDA of 228 million, and net profit of 76 million, while noting that the higher production and shipments helped revenue. He also pointed to a solid cash position entering 2026 and said the new USD 500 million sustainability-linked loan, plus a USD 250 million green shoe option, provides funding visibility for the next three years of capex.

Analysts pressed management on cash cost guidance, contractor bargaining power, royalty hikes, RKAB revisions, HPAL ramp timing, ore mix flexibility, and whether nickel matte pricing could be renegotiated. Management said cash costs should be a bit higher in 2026 because of the furnace rebuild, but still manageable, and said long-term contractor contracts leave room for negotiation and efficiency improvements. On RKAB and ore mix, they said most saprolite volumes for the year are already contracted, while limonite is being stockpiled for HPAL needs; they also said Pomalaa remains on track for Q3 2026 mechanical completion, with full autoclave buildout extending into early 2027.