NICKEL ASIA Corp. on Wednesday said that its net income went up by nearly 41% to P2.77 billion in 2017, driven by improved nickel and cobalt prices.
In a disclosure to the stock exchange, Nickel Asia said its earnings included a P198-million share of equity from the profit of Taganito HPAL Nickel Corp. and Coral Bay Nickel Corp. This was a turnaround from the P413.7-million equity loss recorded in 2016.
Shipment volumes fell to 17.7 million wet metric tons (WMT) of nickel ore in 2017, from 19.3 million WMT in the previous year.
“The drop in shipment volumes was mainly the result of a prolonged rainy season in the south of the country, where three of the Company’s mines are located, and a change in the ore mix to higher value ore,” Nickel Asia said.
However, the company said higher prices for the ore, as well as a favorable peso-dollar exchange rate helped pushed revenues 11.4% higher to P15.74 billion in 2017.
NickelAsia said it realized an average of $4.67 per pound of payable nickel on its shipments of ore, compared to the average price of $4.39 per pound of payable nickel sold in 2016.
“With respect to export sales, the Company achieved an average price of $24.42 per WMT compared to $20.77 realized in the prior year. On a combined basis, the average price received for sales of both saprolite and limonite ore in 2017 was $16.17 per WMT, 11% higher than the prior year’s $14.51 per WMT,” it said.
“Despite the relaxation of Indonesia’s ore export ban in 2017, we saw nickel prices improving, mainly on the back of stronger demand and a second year of a global supply deficit. While ore supply from Indonesia will be the biggest challenge in 2018, we anticipate continuing strong demand for the metal, in part due to the growth taking place in the battery sector,” Nickel Asia President and CEO Gerard H. Brimo was quoted as saying in a statement.
Shares in Nickel Asia rose 11 centavos or 1.75% to P6.40 each on Wednesday. — AGAM
