Nickel prices slash profits at P.T. Inco

Following in the footsteps of its parent company, P.T. International Nickel Indonesia suffered a 53% drop in earnings in the first half of 1990. Lower realized nickel prices continued to drain the company’s treasury, resulting in net earnings of US$41.7 million (17 cents per share), compared with US$89.2 million (36 cents per share) in the first six months of 1989. P.T. Inco, Inco’s (TSE) Indonesian arm, received an average of US$2.95 per lb. for its nickel in matte, compared with a record US$5.93 per lb. in the first half of 1989. The lower selling price was partially offset by increased production — 36.1 million lb. of nickel this half, compared with 29.2 million lb. in the first half of 1989.

The company’s inventories of nickel in matte were one million pounds (458 tonnes) at the end of June. P.T. International Nickel Indonesia $000s except per share items* 6 months ended June 30 1990 1989 Revenue $110,400 $136,800 Net earnings 41,700 89,200

per share 0.17 0.36 *US dollars