Corporate News

Higher prices, weak peso boost Nickel Asia

Posted on July 14, 2017

NICKEL ASIA Corp. on Thursday said the estimated value of shipments jumped 41% in the first six months of 2017, amid an improvement in nickel ore prices and a weaker peso.

The country’s top nickel miner told the stock exchange the value of nickel ore shipments stood at P7.16 billion in the first half, higher than the P5.08 billion during the same period last year.

“The increase is mainly due to higher prices for its nickel ore sales combined with higher shipment volumes and a weaker peso exchange rate,” the firm said.

Nickel Asia sold a total 8.92 million wet metric tons (WMT) of nickel ore from its four operating mines during the January to June period, versus 8.54 million WMT logged a year ago.

“The estimated realized nickel price on 4.68 million WMT of ore sales to Japanese and Chinese customers in the first six months of the year averaged $25.88 per WMT compared to an average of $18.24 per WMT on 5.14 million WMT of ore sales realized during the same period last year,” the miner said.

To recall, nickel prices in the first half of 2016 were significantly lower due to a slump in demand amid an economic slowdown in China.

“We are delighted with our first-half shipment results, despite the challenges we continue to face. By focusing our efforts on the shipment of higher-value saprolite ore, the company benefited from higher ore prices, particularly in the first quarter,” Gerard H. Brimo, Nickel Asia president and CEO, was quoted as saying.

Nickel Asia shares dropped 2.97% to P6.20 a piece on Thursday. -- J.C. Lim