In today’s briefing:
- Vale Indonesia: Potential Lull Before Big Transition For Pure Nickel Play
Vale Indonesia: Potential Lull Before Big Transition For Pure Nickel Play
- Pure nickel play PT Vale Indonesia, a leading global producer, could transform significantly over the next few years with plans to take stakes in projects more than doubling current output
- However, we see risks of a lull into 2025 as production is near capacity, the nickel price could potentially remain pressured from major global oversupply and operating costs could rise
- Given the weak consensus 2025E ROE of 5%, a 1.6x P/B is not particularly inexpensive, although for longer-term investors considering the expansion potential this could be an entry point
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