Oriental Peninsula reports P298-M net income in Q2

MANILA, Philippines - Oriental Peninsula Resources, which operates, among others, Citinickel Mines and Development Corp. in Palawan, reported a net income of P298 million during the second quarter of 2011, in a disclosure to the Philippine Stock Exchange.

Total sales of nickel laterite ore amounted to P506,333,561 while total gross revenue from mining covering the period of January to June 2011 amounted to P312,909,555.

Total assets for the second quarter of 2011 is at P2.9 billion, compared to P1.8 billion in the same period in 2010.

“This good showing is attributed to the strong demand in nickel ore in other countries. Oriental sold an aggregate of 370,603 wet metric tons (WMT). Seventy two percent or equivalent to 269,314 WMT of that were sold to Chinese nicksmelters while the remaining 101,289 WMT (28 percent) were sold to Australian nickel smelting companies,’’ explained Caroline L. Tanchay, president and chairman of the board of Oriental Peninsula Resources.

Oriental’s commercial operation started in March of this year. It acquired 94 percent ownership interest in Citinickel in 2007.

In the same year, Citinickel was granted Mineral Production Sharing Agreements (MPSA) for the contract area situated in Narra and Sofronio Espanola in Palawan, for a total of 2,176 hectares. Citinickel was given the exclusive right to conduct and develop mining operations within the mineral property over a period of 25 years commencing from its date of effectivity.

Construction and development works in the Sofronio Espanola mine site, pre-pile area, and stockpile area commenced during the first quarter of 2011.

From its Narra mine site, in the second quarter of 2011, Citinickel was able to ship seven vessels of nickel laterite ore. Construction, development, and rehabilitation works at this site are ongoing.