INCO - Higher nickel production to offset lower price, in 2023

INCO - Higher nickel production to offset lower price, in 2023 Vale Indonesia (INCO) produced 70,728 tons (+18% yoy) of nickel in 2023, which surpassed its production target, in order to offset lower nickel price (lowest point in the last 3 years). This was thanks to INCO' 4Q23 nickel production that reached 19,084 tons (+6% yoy) and was also in line with INCO' improvement strategy for its maintenance and performance in the mining area and processing plants in 2023. Yet, the nickel price' downward trend is expected to continue in 2024, on the back of the world's oversupply condition that includes Indonesia. Based on the International Nickel Study Group' data, the world' supply of nickel exceeded the demand by 223,000 metric tons in 2023 and anticipates the gap to even further to 239,000 metric tons in 2024. (Source: Investor Daily) Comment: We are positive on the news, as the production is slightly above the company guidance of 70,000 tonne.