PT Inco squeaks out quarterly profit

Higher nickel-matte output by Inco‘s (N-T) 59%-owned Indonesian subsidiary PT Inco helped offset a sharp drop in realized nickel prices during the first quarter.

Situated on the island of Sorowako, PT Inco’s integrated operations consist of an open-pit nickel-laterite mine, a pyrometallurgical processing plant, and thermal and hydroelectric power facilities.

Production of nickel in matte during the first quarter of 2002 totalled 15,700 tonnes, up from 15,200 tonnes in the corresponding period of 2001. Cash costs rose a penny to US$1.27 per lb. nickel.

PT Inco’s realized price for nickel in matte averaged US$4,409 per tonne, down from US$5,449 per tonne a year earlier and US$3,928 per tonne in the fourth quarter of 2001.

The production results enabled PT Inco to report first-quarter net earnings of US$1.6 million (US1 per share) on sales revenue of US$71.4 million, compared with $8.9 million (US4 per share) on US$85.6 million for the first quarter of 2001.

PT Inco also reports that the site has experienced above-average rainfall during the recent quarter, which should benefit hydro generation.

The company is still on track to produce 59,000 tonnes nickel in matte in 2002 — a figure that takes into account a furnace rebuild later in the year.

PT Inco ended the period with US$110 million in current assets and US$449 million in liabilities, including US$260 million in short- and long-term debt.