Mining companies seen to pose mixed results this year

By Sheldeen Joy Talavera, Reporter

LISTED mining companies are expected to deliver mixed results this year, buoyed by global demand for essential metals but weighed down by regulatory and environmental uncertainties, according to analysts.

“The outlook for mining companies in FY (financial year) 2024 appears promising, driven by both domestic and global factors supporting growth and expansion,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message last week.

Essential metals such as gold, nickel, cobalt, copper, and iron are “in demand” due to their importance in renewable initiatives and emerging technologies, he said.

“As the global shift towards these technologies continues, the demand for these metals is expected to remain strong, benefiting mining companies,” Mr. Arce said.

Investors consider risks such as regulatory changes, environmental concerns, and global market dynamics when evaluating investment opportunities in the mining sector, he also said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that there is still cautious optimism regarding the performance of mining firms for the year.

“Although favorable commodity prices and regulatory enhancements could boost growth, challenges such as regulatory uncertainties and environmental issues remain significant,” Mr. Limlingan said in a Viber message.

For 2023, nickel ore producer Global Ferronickel Holdings, Inc. reported a 19.6% decline in its attributable net income of P1.5 billion while revenues grew by 30.5% to P8.8 billion.

Philex Mining Corp. recorded an attributable net income of P1.02 billion, down 43.3% from the previous year, mainly due to lower revenues from its gold and copper operations. Revenues dropped by 16.3% to P7.73 billion.

Atlas Consolidated Mining and Development Corp. saw a decline of 65% in its consolidated net income to P1.1 billion as the company repaid loans and prices of copper decreased.

The company’s revenues went up by 13% to P19.91 billion last year.

Meanwhile, Nickel Asia Corp. enjoyed a 1.5% increase in its attributable net income to P7.93 billion brought by higher nickel ore prices. Revenues from ore sales dropped by 16% to P21.4 billion.

For the third quarter, Apex Mining Co., Inc. posted an attributable net income of P1.03 billion, higher by 14.4% from the previous year.

Gross revenues rose by 10.7% to P3.04 billion in 2024.

“Bottom line is, mining firms have potential for growth, but they must effectively manage challenges in order to capitalize on opportunities this year,” Mr. Limlingan said.

For 2023, the country’s metal production by value increased by 4.8% to P249.05 billion driven by the improved prices and higher output, data from the Mines and Geosciences Bureau showed.