Nickel Asia shipments increase 20% in 2018

MANILA, Philippines — Nickel Asia Corp. posted an estimated 20 percent hike in the value of its shipments in 2018, driven by higher export volume and improved prices.

In a disclosure to the Philippine Stock Exchange, Nickel Asia said its shipments last year amounted to P17.29 billion from P14.43 billion in 2017.

“The increase was due to a combination of higher export volume, improved prices and a more favorable peso to US dollar exchange rate,” the company said.

Nickel Asia sold an aggregate 19.35 million wet metric tons (WMT) of nickel ore from its four operating mines in 2018 at an average price of $16.86 per WMT. The volume is 9.32 percent higher than the 17.70 million WMT at an average price of $16.17 per WMT in 2017.

The company’s Taganito mine accounted for bulk or 46 percent of total shipments during this period as it exported 4.56 million WMT of ore to China and Japan and delivered 4.25 million WMT of limonite ore to the Taganito HPAL plant for a total of 8.81 million WMT, higher than last year’s 7.64 WMT shipments.

This is followed by Rio Tuba mine which accounted for 30 percent of total shipments, which consisted of 2.21 million WMT of ore exports to China and Japan and 3.54 million WMT of ore deliveries to the Coral Bay HPAL plant or a total of 5.75 million WMT.

Meanwhile, the Hinatuan and Cagdianao mines showed mixed results during the period.

Total shipments from Hinatuan in 2018 amounted to 2.15 million WMT compared to 2.45 million WMT in 2017, while total shipments from the Cagdianao mine totaled 2.64 million WMT in 2018,much higher than the 1.85 million WMT achieved the prior year.

“Despite the significant jump in nickel ore supply from Indonesia, we are delighted that the company still managed to increase its shipments for the year,” Nickel Asia president Martin Antonio Zamora said.

“In addition, though the LME nickel price was dragged down in 2018 by negative market sentiment as a result of the US-China trade dispute, we expect a recovery in 2019, on the back of demand from stainless steel producers and battery manufacturers catering to the electric car industry,” Zamora added.

In terms of price, Nickel Asia realized an average of $6.02 per pound of payable nickel on its deliveries of ore to the two HPAL plants, the pricing of which is linked to the LME.

This is higher than the average price of $4.62 per pound of payable nickel sold in 2017.

“With respect to export sales, the company achieved an average price of $22.64 per WMT compared to $25.32 per WMT realized last year,” the company said.

On a combined basis, the average price received for sales of both ore exports and ore deliveries to the two processing plants in 2018 was $16.86 per WMT, four percent higher than the $16.17 per WMT achieved in 2017.

Nickel Asia earlier reported a 30 percent rise in its net income in January to September 2018 to P4.5 billion due to the shift in ore shipments and a favorable exchange rate.