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ickel miner Vale Indonesia saw its profits slump significantly in the first three months of this year compared to the same period last year, as the commodity'€™s prices continued to drop.

The Jakarta-listed miner'€™s first-quarter financial results showed that its after-tax profit was cut by nearly 43 percent to US$17.96 million between January and March this year from $31.5 million last year.

The results also showed that the company'€™s revenue went down by 17.53 percent year-on-year (y-o-y) to $213.11 million in the first quarter, compared to $258.41 last year.

Vale Indonesia, which is part of Brazilian mining giant Vale, actually recorded a slight increase in its nickel matte production of 6 percent to 19,604 metric tons during the first three months of the year. Its deliveries during the period also increased by 2 percent to 19,423 metric tons.

'€œHowever, unfavorable nickel price levels experienced in 2013 remained, resulting in only a 2 percent average price increase realized in the first quarter of 2014 compared to the fourth quarter of 2013,'€ Vale chief financial officer Febriany Eddy said in a written statement published on Wednesday.

The company'€™s average realized price per metric ton during the first three months of 2014 stood at $10,972, down by nearly 20 percent compared to $13,673 per metric ton in the same period last year.

Nevertheless, the company'€™s first-three month financial performance improved compared to the previous quarter, in which the company recorded a net loss of $7 million due to technical issues. Its revenue in the first three months went up by 6 percent quarter-on-quarter (q-o-q).

The company said its cost-efficiency strategy has produced some results, with its cost of revenue '€” excluding inventory movements '€” per metric ton of nickel in matte production declining by 17 percent yoy to $9,012, thanks to lower costs for fuel, lubricant and employee wages.

Last year, the company'€™s annual profits dropped by 42.7 percent to $38.65 million while its revenue slipped to $921.64 million from $967.33 million the previous year, despite around a 7 percent increase in production. Average selling price dropped by about 12 percent throughout last year.

As previously reported, Vale expects to produce 79,691 metric tons this year '€” up by about 5 percent compared to last year.

The firm also expects the price of nickel to rebound and touch $16,000 per ton this year on the back of supply disruptions from Indonesia, which banned exports of unprocessed ore on Jan. 12.

With the expected price increase, Vale expects to earn $1 billion in total sales this year, according to a document given to members of the House of Representatives during a session in February. The company expects to book roughly $112 million on its bottom line.

Analysts have said the implementation of the ore-export ban will be positive for Vale Indonesia, as the company already produces the end-result metal, nickel matte.

Under the 2009 Mining Law, all mining companies are required to process ore in domestic smelters
before export.