DMCI Mining posts Php1.7B record-high profit

Consunji-led DMCI Mining Corporation posted a record-high core net income of Php1.7 billion in 2021, nearly thrice its 2020 profit of Php575 million.

DMCI Mining’s revenue grew 63% more to Php 4 billion from the previous year’s Php2.5 billion. This excludes a nonrecurring income of Php247 million due to deferred liability remeasurement.

“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,” DMCI Mining President Tulsi Das Reyes said in a statement.

DMCI Mining was able to ship out 1.9 million wet metric tons (WMT) of nickel – 18% higher than 2020’s 1.6 WMT. Subsidiary Berong Nickel Corporation contributed one million WMT, while Zambales Diversified Metals Corporation accounted for around 900,000 WMT of nickel ore.

Late last year, the company said it was decommissioning the Berong mine, located in Quezon, Palawan.

The average nickel grade of the company’s shipped nickel also improved from 1.33% to 1.36%.

“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 added.

Russia is a major exporter of high-grade nickel to Europe and China.

According to a BusinessMirror report, average selling prices of nickel ore went up by 40% to $42 versus $30 on low global inventory amid a stronger-than-expected recovery in stainless steel production, steady build-up in electric vehicle battery demand, and the ongoing nickel ore export ban in Indonesia.

DMCI Mining is a wholly-owned subsidiary of DMCI Holdings, Inc.