Nihao reports higher 2012 net income

MANILA, Philippines - Listed miner Nihao Mineral Resources International, Inc. save its income rise year-on-year in 2012 as it commences commercial operations at its serviced nickel mine in Isabela.

In a filing with the Philippine Stock Exchange, the company  reported a net income of P24.15 million in 2012 against P10.74 million in 2011.

Revenues in 2012 rose to P125.9 million from P42.6 million in 2011. Nihao reported adding its operating expenses also rose to P101.8 million in 2012 from P31 million in 2011.

A  Nihao company official explained that that company’s net income for the year was driven up by the substantial service income  made from the commencement of commercial operations at its Isabela nickel mine.

In June 2012,the company signed an agreement with Geogen Corporation for the operation of a nickel mine in Dinapigue, Isabela with Mineral Production Sharing agreement (MPSA) area of 2,314 hectares.

As the operator of the project, Nihao rehabilitated roads and other infrastructure in the mine to comply to government requirements for nickel mining operations. 

The commencement of operations led to a service income of P64.08 million with the cost of service placed at P52.14 million, resulting to a gross of P11.94 million.

The company also liquidated its shares in Oriental Peninsula Resources Group and obtained a net gain of P58.62 million from the investment.

The company is also conducting exploration activities in mineralized properties in Zambales, Misamis Oriental and Masbate.

Nihao is engaged in engaged in exploring, developing, and operating nickel properties.

The company’s subsidiaries and affiliates consist of Mina Tierra Gracia, Inc., Bountiful Geomines, Inc., Oregalore, Inc., and Masbate 13 Philippines, Inc.