NICKEL Asia Corp. (NAC) posted a 168% increase in its net income attributable to the equity holders of the parent company to P6.17 billion in the first nine months of the year on the back of higher ore sales and ore prices.
The listed mining firm said in a stock exchange disclosure on Thursday that its total revenues for the January to September period increased 39% to P21.06 billion compared to P15.11 billion last year.
Of the company’s revenues, the sale of ore and limestone contributed P20.03 billion, followed by services and other revenue at P663.27 million, and sale of power at P371.63 million.
In the nine-month period, NAC sold 14.4 million wet metric tons (WMT) of nickel ore at an average realized price of $27.96 per WMT, improving from the 14 million WMT at $20.10 per WMT logged a year ago.
Broken down, NAC exported 8.73 million WMT of saprolite and limonite ore to Japan and China at an average price of $38.69 per WMT during the period, higher than the 7.5 million WMT at $30.53 per WMT in 2020.
The company also delivered 5.68 million WMT of limonite ore to its Coral Bay and Taganito high-pressure acid leach (HPAL) plants at an average price of $8.20 per pound of payable nickel for the period compared to the 6.52 million WMT at $5.97 per pound recorded last year.
Meanwhile, the company’s operating expenses in the nine-month period also increased 20.7% to P4.85 billion from P4.02 billion a year ago.
NAC President and Chief Executive Officer Martin Antonio G. Zamora said the electric vehicle industry remains the main driver of nickel demand over the long-term period.
“Chinese stainless-steel production was up 12% year on year and nickel ore prices as well as London Metal Exchange nickel price have continued its upward momentum, despite the slowdown in Chinese gross domestic product growth,” Mr. Zamora said.
In a separate disclosure on Thursday, NAC said its board of directors approved the creation of a nonstock, nonprofit foundation called NAC Foundation, which will be in charge of corporate social responsibility initiatives. It has an initial funding of P20 million.
On Thursday, shares of NAC rose 2.37% or 13 centavos to end at P5.61 apiece. — Revin Mikhael D. Ochave
