Nickel Asia shipments surge 97% to P1.97 B in first quarter on robust demand

MANILA, Philippines - Nickel Asia Corp. said yesterday the value of its nickel ore shipments in the first quarter surged 97 percent to P1.97 billion on the back of robust demand and higher nickel prices.

In a filing with securities regulators, Nickel Asia said it sold an aggregate 1.4 million wet metric tons (WMT) of nickel ore from its Rio Tuba and Taganito mines, up eight percent from 1.3 million WMT a year earlier.

The Rio Tuba mine shipped and delivered 396,000 WMT of saprolite ore and 826,000 WMT of limonite ore while the Taganito mine shipped a total of 203,000 MWT of saprolite ore.

The average exchange rate for January to March 2011 was P43.79 to the dollar.

In terms of price, the estimated realized nickel price applicable to one million WMT of ore shipped in the first quarter was at an average of $11.61 per pound of payable nickel as against $8.64 per pound during the same period last year. The balance of the shipments was sold on the basis of negotiated prices per WMT of ore, which averaged $18.69 per WMT of ore compared to $13.51 per WMT for the same period.

The company’s ore shipments are expected to grow further as two other mines – Hinatuan and Cagdianao – will start shipments within the month.

To date, the company has so far executed contracts with various customers for the delivery of 6.6 million WMT of saprolite and limonite ore .for the current year. This is apart from the estimated 2.9 million WMT of limonite ore expected to be delivered to the Coral Bay nickel processing plant this year.

Last year, Nickel Asia’s shipments reached 8.3 million WMT.

Nickel Asia posted a net income of P1.48 billion last year, more than three times the P302.9-million profit recorded in 2009.

On a per share basis, net income was P1.10 compared with only P0.32 the previous year.

Earnings before interest, tax, depreciation and amortization (EBITDA) jumped 138 percent to P4.26 billion from P1.79 billion.

Revenues jumped 78 percent to P8.34 billion as total volume of nickel ore sold and delivered from the company’s four operating mines reached a record 8.34 million WMT as against 6.46 million WMT in 2009.