DMCI Mining hikes nickel ore shipments by 26% in Q1

MANILA, Philippines — DMCI Mining Corp., the nickel mining arm of DMCI Holdings, reported a 26 percent increase in shipment of nickel ore in the first quarter of the year despite the depletion of its Palawan mine.

In a disclosure to the Philippine Stock Exchange yesterday, DMCI said it shipped a total of 620,000 wet metric tons (WMT) in the first quarter of the year, higher than the 494,000 WMT in the same period last year.

The increase was achieved despite the depletion of the Berong mine in Palawan as it had a robust beginning inventory of 389,000 WMT.

In a separate quarterly report, DMCI Mining said the majority of 59 percent of the total shipments came from Zambales Diversified Metals Corp. (ZDMC) as it recorded a 41-percent surge in shipments from 259,000 WMT to 365,000 WMT.

Total production from January to March, declined by 43 percent to 318,000 WMT from 555,000 WMT mainly due the nil production of Berong Nickel Corp. (BNC) in the fourth quarter of 2021.

ZDMC posted a five percent increase in production to 318,000 WMT from 313,000 WMT in the same period last year.

Average nickel grade sold fell by five percent to 1.3 percent due to the 13-percent drop in BNC’s sold nickel grade to 1.24 percent from 1.42 percent following its mine depletion.

In contrast, ZDMC’s sold nickel grade was unchanged at 1.33 percent.

Consequently, average selling prices declined by six percent to $44 per WMT from $47 per WMT, DMCI Mining said.

The company said total inventory fell by 72 percent to 154,000 WMT from 543,000 WMT at the end of the period due to lower production and higher shipments.

“We had a very good start to the year. Unfortunately, without a second operating asset, it would be impossible to maintain our output,” DMCI Mining president Tulsi Das Reyes said.

“Our main challenge now is securing the necessary permits to expand our operations,” Reyes added.

DMCI Mining recorded a 14-percent increase in first quarter core net income to P543 million.

Revenues also increased by 25 percent to P1.4 billion due to higher nickel ore shipments.

Operating expenses jumped by 36 percent to P263 million due to higher fuel costs, marketing expenses, excise taxes and royalties.

DMCI Mining said it is looking to expand its mining operations by another 3,500 hectares, which have a potential nickel resource of over 200 million wet metric tons.

“Once fully permitted, these additional operating assets can sustain the company for at least 50 years,” the company added.