JAKARTA-CM.com, PT Trimegah Bangun Persada Tbk (NCKL) or Harita Nickel, an integrated and sustainable nickel mining and processing company, today announced its financial results for the first quarter ended March 31, 2024.
In the first quarter of 2024, Harita Nickel demonstrated resilience and operational excellence, achieving significant growth. Despite fluctuating market conditions, the company not only met but also exceeded its production capacity targets, leading to a 26% increase in revenue from customer contracts, reaching IDR 6.03 trillion compared to IDR 4.79 trillion in the same period last year.
Although nickel prices declined, the company successfully increased its gross profit to IDR 1.62 trillion from IDR 1.57 trillion year-over-year and operating profit to IDR 1.39 trillion from IDR 1.36 trillion while reducing operational costs. This led to a reduction in selling, general, and administrative expenses to IDR 373.55 billion. This reflects the company’s ongoing efforts to enhance efficiency across all operations.
This quarter’s significant increase in production capacity reflects Harita Nickel’s commitment to innovation and operational excellence. The company reported a 38% increase in mining production output in Q1 2024 compared to the same period in the previous year. This increase was driven by the rising demand for nickel ore from the second HPAL (High-Pressure Acid Leach, a hydrometallurgical technology for refining low-grade nickel ore) facility, PT Obi Nickel Cobalt (ONC), which began entering its production phase at the end of March 2024, with two more production lines expected to commence operations in the coming months.
Harita Nickel’s RKEF (Rotary Kiln Electric Furnace, a pyrometallurgical high-grade nickel ore refining technology) smelters have successfully activated all 12 production lines, achieving an annual capacity of 120,000 tons of contained nickel. In Q1 2024, production exceeded planned capacity, enhancing ferronickel sales from the previous quarter. This achievement reflects Harita Nickel’s capability to effectively meet market demand. Furthermore, the expansion of the third smelter facility with RKEF technology at PT Karunia Permai Sentosa (KPS) remains on schedule to begin operations in early 2025, which will add four new production lines with a capacity of around 60,000 tons of nickel per year in its first phase.
At the HPAL facilities, Harita Nickel has exceeded projected production levels. In the first quarter of 2024, the production output reached 16,716 tons of contained nickel in Mixed Hydroxide Precipitate (MHP), surpassing the nameplate capacity by 22%. This performance demonstrates Harita Nickel’s operational efficiency and production capability.
“We continue to strive to move forward with strategic initiatives and operational efficiencies in navigating fluctuating market conditions. Our first-quarter results reflect our commitment to sustainable growth and our ability to adapt to the evolving industry dynamics,” said Roy Arman Arfandy, President Director of PT Trimegah Bangun Persada Tbk, or Harita Nickel.
Harita Nickel’s strong commitment to innovation and operational excellence has enabled the company not only to withstand market challenges but also to continue growing. The latest initiatives involve the development of production facilities that are expected to not only increase capacity but also enhance efficiency, establishing Harita Nickel as a sustainable leader in the industry. (cm-red)
Discussion about this post