DMCI Mining ships 18% more nickel ore
MANILA, Philippines — DMCI Mining Corp., the nickel mining arm of DMCI Holdings Inc.,reported an 18 percent increase in its shipped nickel ore in 2021 driven by strong demand from China.
In a disclosure to the Philippine Stock Exchange yesterday, DMCI Mining said it shipped a total 1.9 million wet metric tons (WMT) of nickel ore last year, higher than the 1.6 millon WMT recorded a year before.
The company said the record high shipments, coupled with surging nickel prices, nearly tripled the company’s net income to P1.l7 billion
“2021 was a banner year for us. We were able to take advantage of the strong China demand and elevated nickel prices because our two mining assets were operational the whole year,” said DMCI Mining president Tulsi Das Reyes.
Of the total nickel ore shipments, more than one million WMT came from Berong Nickel Corp. while Zambales Diversified Metals Corp. accounted for nearly 900,000 WMT.
The average selling prices jumped 40 percent last year from $30 to $42 on low global inventory amid a stronger-than-expected recovery in stainless steel production, steady build-up in electric vehicle battery demand and the continuing Indonesian nickel ore export ban.
Meanwhile, the average nickel grade of the shipped nickel slightly improved from 1.33 percent to 1.36 percEnt.
Revenues grew 63 percent to P4 billion from P2.5 billion in the previous year.
Excluding a non-recurring income of P247 million mainly due to deferred tax liability remeasurement,the company’s core net income soared 144 percent from P575 million to P1.4 billion.
“We expect significant market volatility due to the worsening conflict between Russia and Ukraine. The economic sanctions on Russia will lead to significant supply disruptions,”Reyes said.
Russia is a major exporter of high-grade nickel to Europe and China. The country accounts for roughly seven percent of global nickel production.
Nickel prices hit $26,105 per ton on Feb. 24, the highest level in more than 10 years, as Russia invaded Ukraine.
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