Nickel Asia exports up 50% in Q1

MANILA, Philippines - Listed Nickel Asia Corp. saw a 47 percent hike in export sales for the first quarter of 2017 owing to higher prices of nickel and a weaker peso exchange rate.

In a report to the local bourse, Nickel Asia said it booked P2.19 billion in export sales from January to March compared with only P1.5 billion in the same period a year ago. 

Nickel Asia’s four operating mines sold a total of 3.05 million wet metric tons (WMT) of nickel ore, 13 percent lower year on year.

“The focus of the ore exports this quarter was on the higher-value saprolite ore, while shipments of the lower value limonite ore was limited to deliveries to both the Coral Bay and Taganito processing plants,” Nickel Asia president and chief executive officer Gerard Brimo said.

Nickel Asia experiences low shipment volumes during the first quarter of the year since operations at the Taganaan and Cagdianao mines in northeastern Mindanao do not commence until the second quarter which is the onset of the dry season.

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 $4.64 per pound of payable nickel compared to $3.87 per pound sold a year earlier.

Prices of nickel ore exports averaged at $31.34 per WMT, much higher than the average of $15.78 per WMT in 2016.

To recall, nickel prices hit a 13-year low during the first quarter of last year, mainly due to an economic slowdown in China.

“Ore export prices have held up very well during the first quarter brought about mainly by low levels of nickel ore inventory in China,” Brimo said.

“Despite news on the partial reversal of Indonesia’s ore export ban, we are confident nickel ore prices will remain firm this year mainly due to an improved outlook globally and specifically for the Chinese economy,” he added.

Brimo earlier said the company is upbeat with the industry this year following improved fundamentals for nickel due to declining inventories coupled with some production cut-backs and closures, and the strong recovery in the Chinese stainless steel market.

Nickel Asia is a global supplier of lateritic nickel ore and exports both saprolite and limonite ore to customers in Japan and China.

Its operating mines are Rio Tuba, Taganito, Cagdianao and Taganaan sites, all located in the southern part of the Philippines.