Nickel Asia sees higher ore exports

MANILA, Philippines — Nickel Asia Corp. (NAC) is looking to outperform in terms of nickel ore exports this year amid warmer temperature, especially with the looming El Niño phenomenon.

In a virtual briefing yesterday, NAC vice president for treasury, investor relations and sales Andre Dy said the company has seen an improvement in ore exports in the first half of this year.

Based on the company’s quarterly report,  the volume of ore export sales increased by 17 percent to 3.66 million wet metric tons (WMT) of saprolite and limonite ore at end-June from 3.12 million WMT in the same period last year.

“We’re having a better shipment season for this year than last year. For the third quarter, we’re seeing similar performance in the second quarter,” Dy said.

“So, we hope to end the year with a year-on-year growth and treat last year as an outlier where weather conditions were extremely bad,” he said.

Based on the company’s quarterly report, the volume of ore export sales increased by 17 percent to 3.66 million wet metric tons (WMT) of saprolite and limonite ore at end-June from 3.12 million WMT in the same period last year.

But despite the higher shipments, NAC realized lower average prices of $28.22 per WMT this year versus $42.05 per WMT last year.

This weighed down on revenues, which declined by eight percent to P10.9 billion from P11.8 billion.

Net income, on the other hand, dropped by 55 percent to P1.7 billion from P3.8 billion.

With the looming El Niño, NAC is optimistic it will meet—even surpass—targets for production and shipments this year as the drier season will have a reverse effect on the company’s operations.

“In terms of our mine planning and production, we will be able to maximize a good weather. For the shipments that could be done in Palawan, we could continue and we could meet out targets,” Dy said.

In 2022, NAC exported 8.15 million WMT of saprolite and limonite, a 22 percent drop from 10.79 million WMT in 2021 due to inclement weather.

“If it’s the reverse effect of last year where we saw an underperformance, the reverse would be an outperformance. I think the likelihood is better if El Niño provides less rains,” Dy said.

In terms of prices, the company official said Class 1 nickel—which is used in electric vehicle (EV) batteries—are seen to increase in 2026 to 2027.

“If Class 1 nickel demand continues to outweigh supply, we might see prices rise again toward 2026 to 2027 when EV requirements will be massive,” Dy said.

For Class 2 nickel, or the ones used for stainless steel, prices are expected to be flat in the near term.