Nickel Asia net income up 30% in 9 months

MANILA, Philippines — Listed Nickel Asia Corp. recorded a 30 percent increase in net income to P4.5 billion from January to September amid the shift in ore shipments and a favorable exchange rate.

In a report to the local bourse, Nickel Asia said it earned P4.53 billion from January to September, 26 percent higher than the P3.59 billion it generated in 2017.

Revenue went up 16 percent to P13.9 billion following the company’s focus on shipments of its higher value saprolite ore coupled by a stronger dollar.

“Our ability to optimize ore export grades and the improved results of our investments in the two processing plants highlighted the period,” Nickel Asia president Martin Antonio Zamora said.

Nickel Asia’s net share of earnings on its 10 percent stake in Coral Bay and Taganito processing plants amounted to P617 million from the P21 million in 2017 driven by strong cobalt prices, a by-product of both plants.

The company’s operating mines sold 15.55 million wet metric tons (WMT) of nickel ore, nine percent higher year-on-year.

Prices of nickel ore exports averaged at $20.17 per WMT during the period, down 17 percent from the average selling price of $24.28 per WMT in the comparative period.

Low-grade limonite ore shipped to the Coral Bay and Taganito processing plants, which remain linked to prices at the London Metal Exchange, fetched an average price of $6.21 per pound of payable nickel compared to $4.49 per pound sold a year earlier.

The realized peso-dollar exchange rate for ore sales during the first three quarters of the year was P52.87 compared to P50.28 during the same period last year.

Nickel Asia is a global supplier of lateritic nickel ore and exports both saprolite and limonite ore to customers in Japan and China.

Its operating mines are Rio Tuba, Taganito, Cagdianao and Taganaan, all located in the southern part of the Philippines.