May 7, 2011

INCO 1Q net profit increases 46.70%

Nickel miner PT International Nickel Indonesia Tbk (INCO) reported a 46.70% increase in net profit for the first quarter of this year as sales rose 26.15%.
However, INCO's cash from operations steeply narrowed 89.09% to US$10.10 million in 1Q 2011 from US$92.59 million. 
INCO recorded US$111.86 million net profit or US$0.011 per share from US$76.25 million or US$0.008 per share.
Operating profit also grew 59.88% to US$160.68 million from US$100.50 million, reflecting an increase in margin to nearly 50% from 39.32%. The company posted a 26.15% increase in sales to US$322.40 million from US$255.57 million.
Loan draw down
INCO has made a US$150 million loan draw down on March 25 2011, as part of US$300 million loan facility which was signed on November 30 2009 with Mizuho Corporate Bank Ltd and Bank of 
Tokyo-Mitsubishi UFJ Ltd. Vale S.A. as INCO's controlling shareholders has provided a guarantee for the facility. The loan will be used by INCO to bankroll Karebbe project.   

Disclosure: No position at the stock mentioned above.  

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