PT Vale Indonesia Tbk ($INCO)

Hello. Good afternoon, ladies and gentlemen. Welcome to PT Vale Indonesia First Quarter 2026 Earnings Call. As usual, my name is Andaru Adi, and I will be your moderator for today's call. So joining me offline are most of the PT Vale C-level executives, while the others are joining online. So during the session, this afternoon session, our will share some highlights from our company's operation and financial performance and then update on the growth projects. And I think at the end of the slide, we will have some -- figure. So next one, in short, today's agenda consists of 4 parts. The first one will be key highlights and financial updates. It will be presented by Rizky Putra. And then on the second part will be coming from Pakuaza. He will present some operational update from our side. And then part number 3 will be growth projects update presented by Muhammad Asril. And then last but not least, industry update and outlook presented will be from Fuses. So this is just a reminder to all participants because this presentation includes some assumptions and forward-looking statements that might involve risks and uncertainties. In addition, all opinions and assumptions are based on our judgment and then subject to change without prior notice. So you need to refer to the following cautionary note and disclaimer. So I think without further ado, I will now hand the first session to Rizky Putra to begin today's presentation.

Thank you, Andaru. And thank you, everyone, for joining the call. I think, first of all, I would like to apologize that our CEO could not join the call today. But on his behalf, thank you very much for attending this quarter 1 earnings results, which I think it's a strong result when it comes to the first quarter performance of PTVI, not only talking about coming from the sense of profitability, but also on the foundational part, which I think later on, we will explain about the key progresses within the projects and developments within our next phase of growth. I think one of the key highlights for the existing operations that we have, which is the nickel matte, which for the first quarter, we managed to deliver 13,620 and [indiscernible] metric tons, which reflects, of course, there's a furnace 3 rebuild schedule, but we believe that it is a strong number, especially when we consider that when it comes to the first quarter, especially in the first couple of weeks of the year, there was an RKAB delay, which I think Babu and the team and all of the people in Sorowako worked very hard in terms of getting into pace and also catching up in terms of the quarterly production. So I think it's a really good output and outcome when it comes to the first quarter production of nickel matte. And I think we can safely say based on the current production rate, based on the mining base that supports the smelters production, we believe that we are on track to achieve a full year production target of 67,645 tons. And then the second point, which is basically the new engine, I would say, for PTVI, which came from the new mining sites, Bahodopi, and also Pomalaa. So I think last year, we had an addition of new mining from Bahodopi, this is going to be the first full year of performance for Bahadopi. And then for Pomalaa since the first week of -- since the first month of the year, which January, we commenced operation from Pomalaa as well, which marks diversification and also potential growth in terms of revenue and diversification of product for PTVI going forward. Going on to the financial performance and profitability. Revenue was $252.7 million in the first quarter. It's a bit lower when we compare it quarter-on-quarter, especially compared to the fourth quarter due to lower sales volume. But the pricing environment have been in feed, right? So average LME which reflected the x realized in or net price increase to a 15% growth, which is equivalent to a number of $14,200 per tonne. EBITDA at the same time rose around 29% quarter-on-quarter to $80.1 million, which shows that the strong pricing environment along with the cash cost that is quite maintained quarter-on-quarter as well. We started in a good profitability result. In the end, net profit increased by 85% with $43.6 million which is a trickle down effect from the pricing environment, the maintenance of the cash cost, which we believe that it is a good number, especially when we see this number, it's only reflecting the first quarter of the year. And that is the first quarter in terms of achievement within the financial and the operational side. But I think it is also important for us to touch upon the readiness for us to anticipate future growth. So I think 1 of the key milestones within the first quarter that we achieved is the readiness of funding facility, so PTVI achieved a sustainability-linked loan of around $750 million, which will support the expansionary phase of the company. alongside with its commitment with this ESG front. So it's not only getting a fresh fund into the bloodstream company, but also it shows the commitment -- ongoing commitment and future commitments of the company when it comes to the topic of ESG. Next slide. So without going to specific details again. I think we're quite aware with the numbers, but I think I just would like to highlight that. Again, pricing environment showed a positive uplift when it comes to quarter-to-quarter result. So a higher pricing environment, which resulted a 15% average selling price increase. cash costs also showing a good performance. We maintain within USD 10,300 per tonne of nicad. This is already including the lower production rate because of the furnace rebuild. So I think it is still continue and manage within the rates that we expected. And all of this also supported by the new blood stream, and again, the selling of the ore. which is showing additional volume. Almost 1 million was resulted and achieved in the delivery of core of satellite for the first quarter. And the cash for supporting that is also in good shape, right? So for Banobit's at around $21 per ton for both getting the limonite and also the satellite whereas for the Pomalaa it's still $13 per tonne. which this is actually still in the beginning of the period, meaning that with Cuscal, going forward with more efficiency, it has an upside. I think the current pace of operation when it comes to Pomalaa. And I think with all of that, in Confluence, EBITDA grow at a good pace at 29% compared to the previous quarter. And then the final reason had profit with a total of $44 million for the first quarter of 2026, which is 85% compared to last year. Cash and cash equivalents at the end of the quarter was $220 million. which we believe that this is still a sufficient amount, a good amount during the quarter. And of course, with the readiness of the funding facility, we are on track to anticipate the future growth going forward. I think we have the next agenda for product and operation. I'll pass it on to Par Abu.

Okay. Thank you, Rizky. So in the first quarter 2026, PT Vale maintained a solid safety performance. So we don't have any fatalities. Also, we don't have any major processes even with lower injury frequency rate, 0.12, improving from 0.19 in the same period last year. So as part our safety program includes proactive safety leadership through Gamba, you can see on the photo, which is the presence of leads in the field to do safety dialogue, reinforce discipline, execution and control and during the critical activities were performed following the safety procedure or the work standards. So in addition to the safety program, we strengthened the emergency response plan through the American Citi. You can see the potency. So we conducted a malignancy drill in several areas of our operations, including Saraco Coal and Bodo validating their megatrend capability through access through the routing exercise. So in the first quarter, a part of the national seeman normally conducted in the first quarter in January to bury they finally have a sec education activity through Farley goes to compost, you can see on the quarter in the middle above. In Pomalaa actually in Southeast labs to share the industry best practices. This activity actually aims to equip students with a basic understanding of the important of the safety. So strengthening the full safety workforce by sharing the best practices and building safety capability through the filing with the -- so move to the next slide for production. Okay. So PT Vale delivered a solid operational performance in the first quarter of this year, you can see in the chart, our production of Nike is 9% -- was 9% above the plan for the first quarter. Despite that we have delayed in LKB in generally, but we could stabilize our Soracoperation to a good quality ore feeding from mining to the processing plant. At the same time, we could manage our maintenance activity, some of our maintenance can be moved to generally at the time that we don't have any ALK but allowed to do the maintenance activity, this is the strategy to minimize the impact to our production. So in addition to our core nickel met production from Soronco operations, PT Vale continued to make a progress in Bahodopi operation. So you can see on the charts on the right, our sup sale close to 890,000 tons. In the first quarter, we also have or sell laminate ore from Hulotiblock is about 89,000 tons. So in overall, in terms of production in the first quarter, our production performance is doing well and further to continue stabilizing our operation for the following quarter to be able to achieve our production target this year. So I think the next slide to be presented by a Asril. Thank you.

Thank you, Abu. Just to continue on the AGP, some highlights. Again, just to refresh everyone that the company is happening the strategic, talks through the follow-on of mining projects as well as downstreaming processing facilities in collaboration with our partners that you can see in the picture. In Pomalaa in particular, our Marine project is reaching 73%. Actually, that's the construction progress, but at the same time also that we are actually starting the mining since Q1 2026, which is you can see also production just ramp up in Bomela. This is a lot of mining also aligned with the development of the each power plant that you can see 65%. Today, the progress is quite good. And then based on the latest forecast in the ground that Mosman completion for Bomela project is going to be by Q3 2026. This is very close to -- and IGP for ACO. Also, we the mining that we are reaching a good progress in mining, while we still have challenges in our ishpower play in Mali today, but we are moving towards that the plans still as the agreement that we met with our partner for so polinate projects. Next slide, please. There are some pictures here that are coming from Boroali Pomalaa and Sorowako project. You can see some patties in the EJT in Pomalaa sorry, in Morali projects, while we are also finalizing some activities in the construction. Also now in Mobile, we are moving toward to second phase of mining development for us to be able to deliver the lemonade or to our spare in Sage. In the picture below, also that you can see some lag progress, some sulfur assets, some construction activities in the ground for Autoclave and also for some other facilities that are going well. on that transactions that, again, the plan is still to have a first mega completion make for 2026 for Morali each purple. In Pomalaa, as I mentioned earlier, there are some pictures that you can see also there. We are already starting the first order refer to each power play for us prepared for Q3 first mean com patients, good pictures in the line of ports down below and also of the pad that you can see those area. In Sorowako project, we're starting also to stop piling the limonite, which is already reaching about 3 million for us to prepare for us to deliver to our esport in Sorowako which is in the picture below, you can see also 3 out of class that's been fabricated in China today and the plan to deliver Tusonalagi by June or July this year still, as I mentioned. I think that's all of the progress of the 3 growth again in hours. And again, in overall, that's still within our plan, then we are expecting to make things moving according to the entered with our partners. Thank you. Next move to in for being.

Okay. Thank you, Pasi. Good afternoon, all. For those who didn't know me, we don't know me. My name is Denise I used to be COO and Project Director. Now my role is helping the company to progress from the -- our journey to go downstream in the nickel. So today, I brought some tourist lines for us to understand a bit what's going on in the nickel market, especially on the power. And also, what is the trend ahead of us in the next, let's say, coming year and 1 or 2 years ahead. And we also talk about a bit about the battery market ahead there, but let's start with this one. So you all know due to the reduced or quarter and also with the new bench market price, so LME nickel price goes up. And the good point of this story is that the market was very over -- high oversupply before and now we see a trend that the market will become less oversupplied. There is a concensus among the analysts that this wasn't a good point benefit for the nickel industry. So the market is more rebalanced now. And this will bring for the medium- and long-term expectation to keep price at this current level or even go a bit upside. Yes, that's a good point of view. Also, I would like to bring analysis on our expectation for HP. So as you all know, we discussed this in the previous quarter analyst call. So sulfur was on that time, really escalating the cost. And now we see sulfur touching $1,200. So it's really going to very high price but as we mentioned before, sulfur is not only related to the straight of our moves closer. So we mentioned that and we talked to some analysts and understood that some of the refineries in Middle East were affected -- deeply affected due to the conflict, yes. So it is expected that in the short term, even with the straight of Olmos opening, we will still see a scarcity of software in the market yes. So we were in China in an last week, and we talk a lot with our JV partners and some people who really understand about the industry. What I would like to say is that HP is also evolving as time passed by. So I could give some examples that the size of Atlas that as you mentioned here, so it's getting bigger. Also, the technology is improving more nickel, more cobalt. So the next stage for the Pal, we will see power recovering so far. -- from everything that they are now throwing away. So for example, in the tailings, we have currently 6% to 7% of the tailings has offered. So it's a huge amount of sulfur and also has a iron of 35% to 38%. So you expressed to us that they are doing a test now a demo plant trial to melt the tailings and we process the sulfur in the gas to transform it to Suuri acid and use again in. So it's not a secret for everybody, but what we are going to see in the coming 1 or 2 years is that the technology we start covering software from everywhere rather than the first and fourth. So pyrite already happening with Meda in Morowali, but now we will see the tailings being processed and the good news is that doing a simple calculation, we will see that this investment on recovering the savings, we are talking about a payback of 2 years. So counting a price that is reasonable. I'm talking about $700, $500 as a long-term price for sulfur. So it means it will trigger for this investment to reduce the dependency on the Middle East sulfur is. So this is a good news, but this will come after 1 or 2 years, yes. So in the short term, I mean, we will see a bit of pressure on the -- mainly on the physical availability -- but this is already managed by the players now reducing a bit capacity to wait until they come with this approach. So the point is that there is a solution and technology will evolve because of this trigger of this need for sulfur. We can also put here a bullet point. So we can also I mentioned that some projects that we are going to see will add a polgether with the side blow. So that when you mine the limonite, you get the saprolite, you process the math and you recover the gas and produce sulfuric acid for the. So we will see a fully integrated project, HPA recovering sulfur, and this will be more integrated and giving more cost advantage. So that's, I mean, the point of view, regulatory figures, but technology evolve and move ahead for equilibrium yes. So the next slide, I'd like to mention a bit about what we understand is going on, on the -- especially on the demand for battery. So we also had the opportunity to talk with our partners, there are Korean partners, especially in China. And what we learned is that there is a huge demand growing for battery store station. But we already know that LFP is dominating the battery store station. But what is new for us is that there is a need as well for battery storage station with some nickel, which I can say that is some battery store station that will demand high intensity energy. So to everybody we talk about this, they say they compare LFP and NCM as diesel and gasoline. They will always coexist at the same time. because they will also -- there will always be a need for high density energy. It doesn't matter if it is in the car, but now we see more moving ahead in the AI servers for this battery station. And we could see already a fabrication of 1 type of nickel that fits for this kind of servers as a nickel federal manganese. So NFM, it's already coming with 30% nickel being produced and fulfilling the need for this battery station, which is good. So in the end, I think I will finish here and move ahead with some questions or some comments. But my point is that it's not about volume anymore, because we see that the award is already fulfilled with a lot of volume, but we are talking about now the right nickel, a sustainable one, the 1 that will bring let's say, requirements for Europe or U.S. or will bring a low carbon content. And this will feed this new market, this brand new application that we are talking about. So CYes, the world doesn't need more nickel, they would need the right nickel, a sustainable or integrated and a competitive one. So that's it, yes. So I mean I know that everybody is excited about this market. But we talk to the Chinese partners with the Korean partners, and we talk about the Western partner as well. So they are confident in the medium and long term. The market will find a way on the sulfur. We will find a way as well. And we always have the nickel opportunity for this applications, high energy test applications. So that's the message, yes? So let's look more ahead and try to understand the whole feature.

Okay. Thank you, Bartina all bales. Yes. Okay. I think -- before we go to the Q&A, Len, I think just I would like to provide a bit of a recap. But I think we all believe that in the long term, value of the nickel itself, right? I think Ben mentioned that as industry fundamentals change, technology adapts. So everything on the long-term side, we believe that it's basically a good adaptation process as well, and it's showing good progress. For the first quarter itself, I think it reflects good result. I think profitability shows that it is within the range that is especially when compared to prior year, it's showing a really good performance amount. When it comes to delivery, base already mentioned as well that the foundation that the company has promised is showing good results as well in terms of progress on the ground. Babu showing before that for the nickel map existing operation, it showed resilience. So I think it is actually looking good right? Later on, I would believe that there will be some questions, especially on the regulatory part. But we truly believe that at the end of the day, the long-term view of nickel is on a positive end. and the progress that have been made showed that day by day, we showed positive progress and the new baseline going forward for PTVI, so thank you very much. So now maybe I'll pass it back to -- and for Q&A.

Okay. Thank you -- thank you, everyone. That was very inisghtful presentation. Okay. So I'm going to open the first Q&A session. [Operator Instructions] So we have the first questions, taken this is -- so question will be any opinion regarding the windfall tax and the newly proposed nickel priority, right.

So I think all of us just got out of the call because it was a 2 p.m. call, and it just finished. So we're actually still trying to understand fully the implementation of the new regulation, which I think, if I'm mistaken, is going to be implemented in the first June of this year. So I think when it comes to nickel map, fundamentally, there's no significant change. There is no change fundamentally in the form of royalty structure for nickel mat which I think just a bit of a highlight when it comes to 2026, Nikolobat is still being considered as back 1 of location for DBI, right? But when it comes to the commodity of ore, nickel as an ore, there is actually a bit of a shift, right? So what we see is that the peering is changing, right? So what previously was probably a bit further from bracket to bracket. Now it's actually being more squeezed, meaning that the change within brackets will reflect or sensitive change in royalty implementation. For the direct impact as far as our understanding today, with the current pricing of $18,000 to $20,000. There's a bit of an increase of 1% implementation. So yes, there is an impact at the current pricing level from the previous royalty rate. But I think 1 of the key highlights here that we need to take a look is that the government is showing a shorter bracket within each classification of royalty. right? Meaning that vulnerability is actually expected in such direction. So just trying to give you a bit of an understanding. The previous one, it was a $4,000 to $7,000 gap between each royalty bracket. But now it is actually showing only $3,000 -- $4,000 -- about $2,000, even to $4,000 of changes going upwards. So I think there's a signal there that the government is trying to capture value. which shows as well that there is a fundamental shift expected from the point of view of the government. So what I'm trying to understand is, of course, the implementation, as I mentioned before, there's a bit of an increase, especially on the ore side, of 1% at current price level. But the outlook is actually the intangible signal, I would say, that is actually being reflected by the shorter gap of increasing pricing. So we're still digesting, but later on, maybe if we have any further information, we'll try to bid our insights going forward.

Thank you, Barci. That is very fresh from Jonas. He just finished the meeting with the government on that one. Okay. So next one, there's a follow-up question from -- I think this 1 coming from Taspana from red. Okay. So any color on potential copper and pricing seeing regulation refurbing led to the old scenes given verativ HR margins.

Yes. I think we've been hearing that there is an active discussion going on. We haven't heard a formal discussion, to be honest on this topic. But I think at the end of the day, the discussion between the players and also the regulators would be supporting the long-term industry view. I think Vinny has mentioned that there are some constraints, especially structural constraints to what's happening on the ground today. So it would require a deeper discussion to actually end up at a current implementation of HPM, right? So we're still waiting for a formal one. But yes, we've been hearing that there might be a discussion on that topic.

Okay. Next one. Any guidance on the cash costs for second quarter and third quarter?

Yes. So for cash cost, -- so this is -- this will be driven by several factors, right? The first 1 would be on production side. I think Bob, we have mentioned that we're quite relatively on track for the full year. So first quarter showed a good result. However, the first quarter is actually coming with the furnace rebuilding place, right? So there's actually a capacity constraint in that sense. So we expect more volume coming in the following quarters. And then there will be an impact coming from commodity prices, right? I think being 1 of the energy cost, which is probably going to be affected by the recent oil price and then also the sulfur price that is actually affecting the market. I think when it comes to sulfur, we've mentioned before that from an inventory point of view we have a long-term view on that. So we're relatively safe. Maybe Babu Niton can elaborate more as well. For the current oil price, inventory, we have a good inventory to begin with. And the pricing probably would have an impact. But what we see as well the let cost support is supporting that. So we try to manage still the cash cost within the full year guidance. Hopefully, we can still achieve that. And hopefully, everything when it comes to the uncertainties can get resolved anytime soon.

Thank you, Pat. Moving on to the next one. I think I will ask Pak Fine to answer this one. So when can we expect the invitation from Matlin to Baba and how big sulfuric acid production can we expect from this network?

I think the integration at with HP, it's easier, and we see that while you're already pertaining to put 6 lines in Pomalaa. So adding the power together with the site low you get this production of the sulfur acid, yes. You asked how much you can get 10% of bonds for integrating Sicelo to HP. But the biggest part of the recover that we get is not through this integration. It's through the melting the tailings, recycling tetanus. So recycling the Telis can get you up to 40% to 50% yes? And this integration can give you 10%. So this is why -- when we talk to you, they have an ambition to over 50% of their sulfur gas through these integration and this similarity process, which will benefit not only in the cost, but we have a big benefit in terms of ESG because as you can understand, tailings will not be generated anymore. We will recycle back the tailings. So far, we will go back to dispel, but we also have a pig iron production and legacy. So everything will be more environmental friendly and so with this integration.

Okay. hopefully, that address your question -- so next one, we'll go to Alan talk for your questions. This is regarding the royalty rate for Limelight. Is it fixed at 10%? Or is it subject to progressive freight up to 15% probes under [indiscernible]

you want to take these Yes. For the rate of royalty Lions still 10%. But if it is that directly sold to at Fiat what you call the base ultra the is at 2%. I think I answered your question.

Yes. So it's fixed at 12% unless it will be sold directly to like EV battery the supers 2%. We also have some questions in the Q&A box. But I think that's also a similar presence with the guidance on the tax costs previously on the C1 gains. Anyone else like to ask or raise questions. So, I think we have some good explanation but that is actually coming from daisey. How much is your current encash costs?

Yes. So for Pomalaa, as mentioned before at Investor Day it was $13 for -- it's blood for getting both for the M&A. And then for Bart, the last 1 is $28 per ton...

Non-blended EBITDA line on it today. It can be finishing with a would higher respect the basically it's about to include the right out in inclusion for -- and I think that sense Mr. Also on the slide deck that we will be so you reported. I think a distinct especially with the regulatory this. But I think there's just a bit of a comment again on the regulation when we anticipate such regulation, let's see it on the anticipated events right? Again, there's a bit of an impact and we believe that the existing cost structure is quite strong when it comes to solving the impact. And the key message is actually showing the sort of packet abound, right? So it's basically trying to capture more value within each bracket. So short of bracket, meaning that there's more volatility expected on the upside. So I think that reflects the intent. So probably a good discussion going forward is trying to understand what is actually the intended capture that the government is trying to look at, which I think is very positive in that sense. Let us not for that Indonesia command 60% of global supply. And let us not forget that we have an impact when it comes to controlling the supply end, which eventually will reflect into the pricing environment as well. So I think I'm just trying to give a bit of a key takeaway from the previous call, which is just fresh on the open. Yes, I think it's a new implementation. But I think the intent is still the same.

Follow-on -- so there's another follow-up question. I think this 1 probably as your sport project probably form.

Okay. especially for Pomalaa we meet with our panels. -- last week, actually on being inside actually yesterday, just are today in Jakarta, to making sure that the progress in the gross sale as problem even for Pomalaa I can say that is ahead of the plan, actually. -- the customer open was Q4 and today is [indiscernible] 2026 just very close. The same is Sabala. Sabala is almost still the same with the plan that we are actually putting before. still in Q4 this year. And the progress in the granola the Sandton we don't see also any further things that might hold in the projects to go in a sense especially for Sorowako local life, that's the last part of the project that we have put into the constructions, but all of the critical permit and licensing already being obtained on that. So it's made enough of course, construction of the facilities today.

And just to add on, as you pointed. So there is a benefit of our work compared to the average of oil in Indonesia. So before we didn't had a huge advantage, but now with the sulfur price going up, yes. So you all know that as high the MGO content in the limonite as high sulfur, you need to leach the -- so our MGO in Pomalaa is about 1.7%. So the average in the market for Lamona is about 3%. And so we have a big competitive advantage. So which means bringing Pomalaa and our other projects and put in place, we'll put a plant that has a competitive advantage in the current scenario, which has very cost pressure, yes? So it's a huge advantage of having an award that do not demand 1 ton of nickel, 10 tons of sulfur. So for Pomalaa, doing to this lower MGO, we will have less amount of sulfur demand, so the ratio is not 1 to 10. It's lower.

Okay. What's our grid 1.7...

Lamont in Pomalaa will be around 1.7% -- market about 3% -- 40% to 50%. Okay. So this is -- I mean, why they keep saying that Pomalaa in our drug has 1 of the best more not only in terms of nickel, but due it to this MGO advantage now and it's really a good advantage for the.

Yes. Just to be specific on that, because our partners are building out the secular promise is there, that's part of the integration things that what Fine mentioned. So having HPAL online at the same time also salutes online. That's the advantage of integrating and recovery of the sulfur. And that's what Pine mentioned to be able to report for those maximum. So that's actually the we're making high confidence that age plan is still flying because of uses and also additional I think that regarding to the ore parity from mobile finish.

there was a follow-up question from the parting with the CapEx schedule for full year 2026 and the next few years.

Sure, we have slightly with the CapEx?

Well, I don't think we need to show the slide but I think for this year alone, I think our target for CapEx is still around $670 million that's still aligned with our initial target on that one, listen because we still need to conclude most of the Bahodopi mining this year, and then follow with the Pomalaa mining. And then next year, it will be -- the CapEx will be in total, will be around $1.1 billion. which majority of it consists of our equity participation to some of our mall JVs in that sense. So during '26 until '28, it still invest on year for Petten Asia. So we expect that more and more CapEx will come.

Okay. So I think the questions on the guidance for nickel of sales. I mean SecureLKP for this year, what's the company's strategy bonder?

For sure, everyone knows that we are actually having approved approximately 30% to 40% KB this year against the total budget that we submitted before. And the progress of we also presented that our production -- actual production is also still spans of today. And for the next emission for KB, actually the team in the ground today is finishing off all of necessary of the implementations that have been prepared for us to be ready to submit their KB. So in that sense, that we are actually ready to go. Now it's basically for us to keep monitoring what's going on in the MMR actually, that they won't fear that there will be another policies since that's going to be issued. But again, our engagement, our communication is still ongoing to making sure that we are aligned with that. And the expectation to have that issue soon, then we can submit our KB as soon as possible plane that we are actually putting in the past for full year in 2026 especially for Pomalaa and Bahodopi because that's -- no changes in Sorowako, right, Sorowako still 100%, being approved already. The 30%, 40% was only for Pomalaa and Bahodopi.

So next one, probably coming from Jeremy, just 1 to clarify on the [indiscernible] cobalt by repeat for metal net to induce during the previous -- the estimate in gross market antenna mix. He faced by the fall.

Yes, the cobalt content in the nickel met will be 2%, be separate from nickel matte. Then Nickel still at 3.5%.

2%.

Yes.

So will be separate. separate on nickel. Next 1 on Q&A, given recently your changes about how do you anticipate this good impel nickel oil price and sort of higher costs had quit -- it is in just for a -- what was the question? not going to refer regulatory changes. How do you anticipate this correct magical price to love the higher cost -- and do you see any potential demanutructure for customers from higher prices. Okay. Right. So I think the question is especially on the nickel oil price, right? So I think when it comes to nickel price, we need to differentiate between the pricing of the limonite and also the split, right? For supply, we have -- it has been showing a positive momentum. So even with new HPM implementation, I think it does not change the fundamental pricing because the previous transaction was already commended a relatively high premium environment. And we believe that the condition, especially when it comes to quarter 1, and we still see that in the quarter 2. It's showing a positive momentum, right? It's a good pricing environment. So when it comes to absorbing the costs, it's a good increase and also a buffer to actually accommodate the increase in input pricing costs. But when it comes to limelight, I think this is something that we're waiting for the implementation, right? I think in coal, we have the privilege because most of our live net sales is in the second half of the year, right? Our Pomalaa operation will be commencing mechanical completion in the third quarter, meaning that we actually have time to understand the implementation, the real implementation of the pricing. And probably, if there is such shift in pricing environment or regulation, we have enough time to prepare ourselves as well. So I believe that it's actually a good position for us, both in the live minute and also the supplier end. Quarter 1 was a good premium environment. Quarter 2, still showing a good premium environment. So yes, to that question, we actually have a good buffer to absorb the higher input cost.

Thank you Steve. I think that's the last question that we have for today. I think before we close the call, you want to say something on a closing statement.

No, I think I'm already covered it before and again, everything on the long-term value and the long-term view of nickel, we believe that it's still on the positive side. I think Vine mentioned specifically when it comes to technological advancement and innovation, it continues to show a positive result. And from a business momentum point of view, I think Base and Babu mentioned that the readiness of the company in terms of meeting the commitments in terms of delivering the projects, it showed positive results, meaning that the new baseline of the company, hopefully, will show some fruits in the near term. We are growing with 3 engines nowadays. It's not the only solace, but today, -- for 2026, we're seeing a full 3 mining operations for Bahodopi, Sorowako, and Pomalaa. So I think it's still exciting environment for the company and forward-looking -- a good forward-looking momentum as well.

Thank you, as -- all right. Everyone with those I think session is finished. I think we can close the meeting for today. Again, thank you very much, everyone, for joining the call. And looking forward to see you soon in the second quarter income. Thank you. Thank you again.

Thank you.