NICKEL ASIA Corp. reported its attributable profit reached P2.62 billion in the first nine months of the year, nearly tripling the P980 million recorded a year ago as it shifted focus on shipments of higher-value saprolite ore.
“The combined effects of the Company focusing more on shipments of its higher-value saprolite ore, more particularly in the first quarter when ore prices were firmer, a stronger US dollar and a turnaround in profits from the Company’s equity share in its investment in both the Coral Bay and Taganito processing plants, resulted to a significant improvement in earnings during the first nine months,” Nickel Asia told the stock exchange on Monday.
Nickel Asia’s share in earnings on the 10% stake in the Coral Bay and Taganito plants reached P21 million due to robust cobalt prices, versus the P561 million loss last year.
During the nine-month period, the mining firm sold an aggregate 14.24 million wet metric tons (WMT) of nickel ore, 6.19% lower than the 15.18 million WMT in the same period last year due to a delay in the start of shipments from its Hinatuan and Cagdianao mines. The delay was attributed to the prolonged rainy season, which caused sea swells in northeastern Mindanao, where the two mines are situated.
Nickel Asia said of the total volume of ore shipped so far this year, some 7.31 million WMT were saprolite ore and 6.92 million WMT was limonite ore, including the 6.27 million WMT delivered to both the Coral Bay and Taganito processing plants.
“With respect to export sales, the Company achieved an average price of $24.35 per WMT compared to $19.37 realized last year. On a combined basis, the average price received for sales of both saprolite and limonite ore in this first nine months was $16.27 per WMT, 16% higher than the prior year’s $14.07 per WMT,” Nickel Asia said.
Shares in Nickel Asia were down a centavo to close at P7.39 each on Monday. — Janina C. Lim
