Nickel Asia earnings surge to P2.2 B

MANILA, Philippines - Listed Nickel Asia Corp. saw its net income surge more than 700 percent to P2.2 billion in the first half, mainly due to higher shipments and improved global prices.

In a filing with the local bourse, Nickel Asia said the increase in profit was due to increased shipments of higher-value saprolite ore, and  a stronger US dollar.

Nickel Asia’s net share of earnings in its 10 percent stake in Coral Bay and Taganito processing plants amounted to P55 million.  This was a turnaround from the P484 million loss incurred in first half of 2016.

“Strong cobalt prices contributed to our performance in the first half. We are also seeing nickel prices bouncing back from the lows experienced in recent months, a good sign as we are now in our peak shipment season,” Nickel Asia president and CEO Gerard Brimo said.

Nickel Asia’s operating mines sold 8.92 million wet metric tons (WMT) of nickel ore, four percent higher year on year.

Prices of nickel ore exports averaged at $25.88 per WMT, up 42 percent from the average selling price of $18.24 per WMT.

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 $4.40 per pound of payable nickel compared to $3.92 per pound sold a year earlier.

 Nickel prices hit a 13-year low last year, mainly due to an economic slowdown in China.