INCO - Key Takeaway from earnings call

INCO - Key Takeaway from earnings call Project Updates: 1)Bahadopi Mine: INCO has obtained new AMDAL and port terminal licenses. Construction on the offshore jetty has resumed as scheduled. The Traffic Management Plan (TMP) implementation is on track for completion by the end of 1Q24, 2) Sambalagi RKEF: TISCO and Xinhai have successfully completed the SAFE registration and Overseas Direct Investment (ODI) Approval for the Morowali Project. INCO has invested approximately US$50 mn in land acquisition and site preparation for the project, 3) Pomalaa Mine & HPAL: Following FID approval, INCO is currently focused on procuring three major contracts (PCM, P&C, and EPC) to support the construction phase. Concurrently, early construction works such as access road development, quarry supplies, and project office establishment are underway, 4)Sorowako Mine & HPAL: Feasibility studies for the Sorowako Limonite Mine are nearing completion. INCO has also signed a definitive cooperation agreement with Huayou for the construction of an HPAL facility in East Luwu. More Aggressive Capital Expenditure onward. With a projected capex of US$600-700 mn for 2024 to fund these projects, the company anticipate a more aggressive balance sheet going forward. This is particularly noteworthy considering the cash position at the end of 2023 stood at approximately US$800 mn, alongside lower cash generation and the aggressive capex forecast for 2025. Details regarding the divestment scheme will be announced. INCO has made a progress in its exploration efforts within the Tanamalia block. Following the completion of 4-meter space drilling, INCO has obtained approval for the next phase of operations, allowing for tighter drilling down to 200 meters, meeting internal project development standards. The current focus for INCO is on executing the exploration plan despite the challenges posed by the remote and delicate nature of the Tanamalia area. Furthermore, the collaboration with Ford has garnered interest from other automakers for potential cooperation. (Source : Company)