Nickel Prospects Improve, Ifishdeco (IFSH) Boosts Nickel Production

MINING COMPANY - JAKARTA. PT Ifishdeco Tbk (IFSH) is optimistic that global nickel demand will continue to rise until the end of 2024. This optimism is reflected in the improvement of several prices that serve as a benchmark for nickel trading.

One of them is the Mineral Benchmark Price (HPM) in April, which increased compared to March 2024, from US$ 16,021.67 per dry metric ton (dmt) to US$ 17,424.52 per dmt.

Agus Prasetyono, Director of IFSH, said that this aligns with the high demand for electric vehicles worldwide. Thus, this also presents an opportunity for the long-term sustainability of IFSH's business.

Agus believes that the business prospects for IFSH in 2024 are quite bright. IFSH's prospects are supported by the need for nickel in the development of electric vehicle technology in the coming years.

Therefore, IFSH will continue to expand. In addition to being supported by the still bright prospects of the nickel industry in the country, this action is also in line with the high demand for nickel products.

Just so you know, IFSH currently has 3 mining business permits (IUP), with details of 2 nickel IUPs and 1 silica IUP.

Nickel IUP production in 2023 was 2.29 million metric tons. This makes IFSH the largest tax contributor in the mining and quarrying sector in Southeast Sulawesi.

According to the 2024 Work Plan and Budget (RKAB), Ifishdeco's nickel ore production is targeted at 2,202,975 tons in 2024.

This production target for Ifishdeco's nickel ore is set to increase to 2,247,035 tons in 2025 and is targeted to grow to a maximum of 2,291,975 tons in 2026. In conclusion, the average production each year is 2.2 million or 6.6 million over three years.

Ifishdeco's concession land is located in Tinanggea, South Konawe Regency, Southeast Sulawesi. "The total land owned by Ifishdeco is 2,580 hectares and the IUP Operation/Production is 800 hectares," said Agus in a press release, on Tuesday (30/4)

IFSH recorded consolidated net sales of Rp170.02 billion throughout the first quarter of 2024. These net sales came from nickel sales to related parties amounting to Rp61.39 billion and sales to third parties amounting to Rp108.63 billion.

In the first quarter of this year, IFSH managed to reduce the cost of goods sold by 44.46% to Rp99.94 billion, from Rp 179.95 billion in 2023. With the decrease in the cost of goods sold, IFSH was able to record a gross profit of Rp 70.08 billion as of March 2024.