Despite lower revenues brought about by weaker ore export prices, Listed Nickel Asia Corp. saw its net income increase by 11 percent for the first quarter of the year.
Nickel Asia closed the first quarter with P 728 million, in comparison to the P 655 million it earned in 2017 for the same period.
Revenues went down 13 percent to P2.16 billion due to weaker ore export prices following the rising ore shipments from Indonesia and a change in the ore mix.
Prices for the company’s traditional exports of ore for the production of nickel pig iron and ferronickel for stainless steel are currently under pressure due to increasing supply from Indonesia as a result of the partial lifting of its export ore ban in January 2017.
The prices for the average grade of ore for shipments also plummeted after the company had focused on shipments of higher grade ore last year to benefit from higher prices during that period.
However, this was offset by the net foreign exchange gains due to a weaker peso exchange rate combined with a turnaround in earnings from the company’s processing plants affiliates.
Nickel Asia’s net share of earnings on its 10 percent stake in Coral Bay and Taganito processing plants amounted to P195 million from an P11 million loss in 2017 driven by strong cobalt prices, a by-product of both plants.
“We are fortunate that there has been a significant price improvement on our ore deliveries to the two processing plants. This component of our business, including the impressive turn-around in the performance of the two processing plants, will be key drivers of our earnings this year,” Brimo said.
The operating mines of the company sold 1.09 million wet metric tons (WMT) of nickel ore, three percent higher year on year.
Prices of nickel ore exports averaged at $17.07 per WMT during the period, down 46 percent from the average selling price of $31.67 per WMT in the comparative period.
Nickel Asia supplies lateritic nickel ore and exports saprolite and limonite ore to customers in Japan and China.
Its operating mines are Rio Tuba, Taganito, Cagdianao, and Taganaan, located in the southern part of the Philippines.
