PTINCO reports Q2 net earnings of $126.3m
Monday, August 1 2011 - 12:55 AM WIB
Total net earnings in 2011 year-to-date of $ 238.1 million were 9% above the same period in 2010.
The increase in net earnings in 2Q11 compared to 1Q11 was mainly driven by higher deliveries due to higher production, partially offset by lower average realized prices.
The company recorded an average realized price of nickel in matte of $19,895 per metric ton during 2Q11, compared to $20,246 per metric ton in 1Q11. Net sales were $393.0 million for the three months ended June 30, 2011, an increase compared to $322.4 million in 1Q11.
In 2Q11 deliveries totalled 19,438 metric tons compared to 15,689 metric tons in 1Q11.
Production of nickel in matte in 2Q11 was 18,598 metric tons, an increase of 13% compared to 16,502 metric tons in 1Q11.
The increase in production was mainly due to higher calcine throughput in 2Q11 compared to 1Q11, as there were earthquake and lightning storms in Sorowako during 1Q11 that caused a temporary shutdown of production.
The company said the Karebbe hydroelectric power generating plant project is almost completed and expected to come on line in the 3Q11, as planned. The project will produce enough hydroelectric energy to replace existing oil and diesel use to feed the electric furnaces at the Sorowako facility and will reduce cost of energy. It will also enable its production growth in the integrated industrial complex of Sorowako and Bahodopi.
The company plans to spend $232 million on capital expenditures in 2011. The company?s goal is to achieve an annual production of 90,000 metric tons in 2015.
Some initiatives to achieve this target are Bahodopi Projects; Project CEPAT (Rapid Mining Method Optimization); Production Optimization Project Phase 1 which includes a rebuild and upgrade of one of PTINCO?s eletric furnaces; and Operational and Maintenance Improvement Program (OMIP).
PTINCO is finalizing the feasibility and engineering studies to achieve 120,000 metric tons of production over the next few years, based on the construction of a new processing line in Sorowako and new production facilities in Bahodopi.
PTINCO is a unit of Brazilian mining giant Vale Inco. (alex)