DMCI Mining Corp. on Friday said that it is expecting “modest growth,” even as it awaits the resolution of its appeals to the Office of the President to reopen its nickel mines in Zambales.
In a disclosure to the stock market, DMCI Holdings, Inc.’s mining arm said it is aiming to ship 1 million wet metric tons (WMT) of nickel ore but also said this is dependt on the nickel market and regulatory conditions.
DMCI Mining president Cesar F. Simbulan, Jr. said that despite the closure of its two mines — Berong Nickel Corp. (BNC) in June 2016 and Zambales Diversified Metals Corp. (ZDMC) in February 2017 — they still have enough inventory to make shipments.
“Our nickel ore inventory is good for a few more shipments. If nickel prices remain at current levels, we expect a double-digit improvement in our bottom line,” he added.
“But beyond 2018, there will be nothing more for us to sell, unless the government lifts the mining suspensions of BNC and ZDMC. Our fate rests on the decision of the government.”
The Department of Environment and Natural Resources allowed the mines to ship their stockpiles “to limit the possible accumulation of silt in nearby bodies of water.”
DMCI Mining will also conduct cost-cutting measures this year.
Last year, DMCI mining only managed to ship out 525,000 WMT of nickel ore, 51% less than the 1 million WMT it shopped in 2016 — at a selling price of $29, which was 6% less than 2016’s $31.
The mining firm ended last year with P105 million in net income compared to a net loss of P11 million in 2016.
DMCI Holdings, on the other hand, reported that its profits climbed 16% to P12.7 billion.
DMCI Holding’s shares on Friday closed P0.320 or 2.41% lower at P12.98 from Thursday’s selling price of P12.30 per stock. — A.A. Mogato
