INCO posted a net profit of USD53 million in 1H20 and in-line with our expectation. The result was supported by higher production, higher ASP, and lower production cost as crude oil and coal prices decline. We maintain estimates for 2020-2022F after INCO’s better results in 1H20 and estimate the nickel prices to hover at USD15,300-15,800/tonne until the end of 2020. Hence, we retain BUY recommendation for INCO.
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