1Q19 Modest Performance
INCO posted 1Q19 net losses of USD20.2 million, marking worse performance than 4Q18 and 1Q18 performance, attaining earnings of USD5.3 million and USD6.8 million, respectively. 1Q19 sales of USD126.4 million declined by 36% q-q from 4Q18 sales of USD197.3 million and decreased by 26% q-q from 1Q18 sales of USD170.5 billion. INCO production edged down 36.4% to 13,080 tons compared to 20,579 tons in 4Q18.
Revised-Lower Estimates after Declining Production
1Q19 muted operational performance was attributable to maintenance activities of Larona canal and unanticipated damage to electric rotary kilns. Risks hampering 2019’s production are unpredicted weather in the second semester 2019, global nickel price volatilities, slowdown in global economic growth inevitable to lagging demands for exports. We ebb our production estimates for FY19F from 70,745 tons to 75,000 with the nickel price estimate until the end of year at roughly USD13,500–USD14,000 per ton and the estimate of total FY19F sales of USD736 million.
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