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Nickel Asia Q3 income at P6.17b, up 168% on higher ore sales

by Philippine Resources - November 05, 2021

Photo credit: Nickel Asia Corporation Facebook Page

Nickel Asia Corporation recently announced its unaudited financial and operating results for the nine-month period ended September 30, 2021 with an attributable net income (net of minority interests) of P6.17 billion, 168% higher compared to the P2.30 billion achieved in the same period last year. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to P11.01 billion compared to P5.93 billion in the prior period.

The higher net income was primarily the result of higher ore sales prices. The Company sold a total of 14.4 million wet metric tons (WMT) of nickel ore at the weighted average realized price of $27.96 per WMT in the first nine months of 2021, compared to 14.0 million WMT at $20.10 per WMT in the same period last year. Accordingly, total revenues increased by 39% to P21.06 billion from P15.11 billion in the prior year.

Breaking down the ore sales, the Company exported 8.73 million WMT of saprolite and limonite ore to customers in Japan and China at the average price of $38.69 per WMT in the nine-month period ended September 30, 2021. This compares to 7.50 million WMT at $30.53 per WMT in the same period last year. Likewise, the Company delivered 5.68 million WMT of limonite ore to Coral Bay and Taganito HPAL plants, the prices of which are linked to the LME, and realized an average price of $8.20 per pound of payable nickel. This compares to 6.52 million WMT at $5.97 per pound of payable nickel in the same period last year.

Following higher Nickel LME prices in 2021, the Company recognized gain from its equity share in its investments in the two HPAL plants in the combined amount of P340.4 million in the first three quarters of 2021, compared to a loss of P11.1 million in the same period last year. Furthermore, due to the stronger US Dollar, the Company recognized net foreign exchange gains from its US Dollar denominated net financial assets in the amount of P587.2 million for the first nine months of 2021, a turnaround from the net foreign exchange losses of P333.5 million in the same period last year.

Total operating cash costs increased by 13% year-on-year to P8.86 billion from P7.83 billion in 2020. On a per WMT basis, total operating cash costs increased to P615 per WMT of ore sold from P559 per WMT in 2020.

“Chinese stainless steel production was up 12% year-on-year and nickel ore prices as well as LME Ni price have continued its upward momentum, despite the slowdown in Chinese GDP growth” said Martin Antonio G. Zamora, President and CEO of the Company. “While the Chinese economy is currently facing short-term uncertainties, the surging EV industry remains the main driver of nickel demand over the long-term,” Mr. Zamora added.

Finally, the Company’s Board of Directors approved the declaration of a special cash dividend of P0.22 per share of common stock, payable on December 2, 2021 to shareholders of record on November 18, 2021.

 

Article courtesy of the Philippine Stock Exchange


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Philippine Resources - March 17, 2022

Nickel Asia hits P7.81b net income in 2021 on higher ore prices

Photo credit: Arrow Creatives “A defining year- that is how 2021 was for our Company”, said Martin Antonio G. Zamora, President and CEO of Nickel Asia Corporation (NAC; PSE: NIKL). “In the face of the second year of the COVID-19 pandemic and the continuing economic and social hardships it has brought to our country and our communities, we remained focused on our people and our business objectives, on our diversification into renewables through our subsidiary Emerging Power, Inc. (EPI), and we even crafted and adopted a new vision for our future.” “At the same time the surging demand for nickel fueled by a doubling in sales of electric vehicles and strong growth in stainless steel production coupled with lower than expected nickel production, particularly out of Indonesia, resulted in a nickel deficit of about 150,000 tonnes rather than a projected surplus. This has clearly been a significant tailwind for the global nickel industry and for us”, Mr. Zamora added. FINANCIAL RESULTS NAC recently announced its audited financial and operating results for 2021 with attributable net income (net of minority interests) at P7.81 billion compared to P4.07 billion reported in 2020. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to P14.40 billion compared to P9.47 billion in the prior year. The higher net income was the result of higher ore sales prices. NAC sold a total of 17.94 million wet metric tons (WMT) of nickel ore at the weighted average realized price of $29.13 per WMT in 2021, compared to 18.20 million WMT at $22.46 per WMT in 2020. Accordingly, total revenue increased by 26% to P27.40 billion from P21.77 billion in the prior year. Breaking down the ore sales, the Company exported 10.79 million WMT of saprolite and limonite ore to customers in Japan and China at the average price of $40.40 per WMT in 2021. This compares to 10.02 million WMT at $33.99 per WMT in 2020. Likewise, NAC delivered 7.14 million WMT of limonite ore to the Coral Bay and Taganito HPAL plants, the prices of which are linked to the LME, and realized an average price of $8.36 per pound of payable nickel. This compares to 8.18 million WMT at $6.22 per pound of payable nickel in 2020. Expressed in US Dollar per WMT, deliveries to the two HPAL plants generated $12.11 and $8.33 per WMT in 2021 and 2020, respectively. Following higher Nickel LME prices, the Company recognized a gain from its equity share in its investments in the two HPAL plants in the combined amount of P557.9 million in 2021, compared to P190.4 million in the prior year. Furthermore, due to the stronger US Dollar against the Peso, NAC recognized net foreign exchange gains from its US Dollar denominated net financial assets in the amount of P558.9 million in 2021, a major turnaround from net foreign exchange losses of P450.8 million in 2020. Total operating cash costs increased by 11% year-on-year to P11.73 billion from P10.61 billion in the prior year. On a per WMT sold basis, total operating cash costs increased to P654 per WMT compared to P583 per WMT in 2020. RENEWABLE ENERGY On the NAC renewable energy business under EPI, Jobin-SQM Inc. (JSI), an EPI subsidiary, is expected to complete its 38 MW project expansion by second quarter this year. This will increase the capacity of its Mt. Sta. Rita Solar Power Project located in the Subic Bay Freeport Zone to 100MW from the current 62MW. In February 2021, JSI was awarded another 100 MW Solar Energy Operating Contract by the Department of Energy. JSI is currently in the pre-development stage and is looking to sign the EPC contract this year with a target of full commercial operation by 2024. Aside from expanding JSI’s projects, EPI is in the process of developing land in high irradiance areas in the country to grow its investments in solar power generation. It is in the final stages of acquiring a solar power project in Visayas. EPI is looking to reach 1,000 MW by 2028, adding about 500MW by 2025. It is likewise in search of appropriate sites for wind power projects. INCREASED EQUITY SHARE IN CORAL BAY The Board of Directors also approved the exercise by the Company of its option to purchase an additional 33,046,875 common shares in Coral Bay Nickel Corporation (CBNC) for US$25,937,500 under an Option Agreement with Sumitomo Metal Mining Co. Ltd. The Company intends to exercise its option in October 2022 or earlier, to increase the Company’s equity share in CBNC from 10% to 15.625%. REGULAR AND SPECIAL CASH DIVIDEND Finally, the NAC Board of Directors approved the declaration of a regular cash dividend of P0.17 and a special cash dividend of P0.05 per common share payable on April 7, 2022 to shareholders of record on March 24, 2022.

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Philippine Resources - August 06, 2021

Nickel Asia nets P2.73B in 1st half of 2021

Nickel Asia Corporation announced its unaudited financial and operating results for the six-month period ended June 30, 2021 with an attributable net income (net of minority interest) of P2.73 billion, a 579% increase from P401.4 million reported during the same period last year. Earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to P5.34 billion, a 157% increase compared to P2.08 billion in the prior year. The higher net income was the result of higher ore sales prices and volume. The Company sold a total of 8.3 million wet metric tons (WMT) at the weighted average realized price of $25.47 per WMT in the first half of 2021 compared to 7.3 million WMT at $16.02 per WMT in the same period last year. Breaking down the ore sales, the Company exported 4.56 million WMT of saprolite and limonite ore at the average price of $37.50 per WMT in the first six months of 2021 compared to 3.28 million WMT at $26.03 per WMT in the same period last year. Likewise, the Company delivered 3.74 million WMT of limonite ore to Coral Bay and Taganito HPAL plants, the prices of which are linked to the LME, and realized an average price of $7.92 per pound of payable nickel. This compares to 4.02 million WMT at $5.68 per pound of payable nickel in 2020. Furthermore, owing to higher LME prices, the Company recognized gain from its equity share in its investments in the two HPAL plants in the combined amount of P244.1 million in the first half of 2021 compared to a loss of P70.6 million in the same period last year. The realized Peso to U.S. Dollar exchange rate for ore sales was P48.26 compared to P50.49 in the prior year. However, the exchange rate at the end of first half of 2021 stood higher at P48.80 compared to when it started the year at P48.02, thus the Company reported net foreign exchange gains of P190.6 million. This compares to the net foreign exchange losses of P101.7 million reported in the first half of last year. Total operating cash costs increased by 26% year-on-year to P5.15 billion from P4.10 billion in 2020. On a per WMT sold basis, total operating cash costs increased to P621 per WMT compared to P562 per WMT in 2020. “Demand for nickel remains strong due to surging stainless steel output, driven by the recovery of the construction, manufacturing, and oil and gas sectors, and accelerating demand from the EV battery industry,” said Martin Antonio G. Zamora, President and CEO of the Company. “Further, nickel supply disruptions, due in large part to the Indonesian ore export ban and COVID-19 related lockdowns, provide additional support to the price of nickel,” Mr. Zamora added.   Article Courtesy of The Philippine Stock Exchange

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Philippine Resources - May 09, 2022

NICKEL ASIA CORPORATION ANNOUNCES 80% INCREASE YOY IN ATTRIBUTABLE NET INCOME FOR FIRST THREE MONTHS OF 2022

Nickel Asia Corporation recently announced its unaudited financial and operating results for the three-month period ended March 31, 2022 with an attributable net income (net of minority interest) of P1.05 billion, an 80% increase from P584 million net income reported during the same period last year. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to P2.20 billion, a 30% increase compared to P1.69 billion in the prior year. “The global nickel industry continues to labor under a record deficit – with an even larger projected deficit this year as compared to the previous year”, remarked Martin Antonio G. Zamora, President and CEO of Nickel Asia Corporation (NAC; PSE: NIKL). “Coupled with continued strong demand for stainless steel and the accelerating trend in demand in the electric vehicle market, these factors have been beneficial to our metals and mining business”, he added. Although nickel ore sales volume decreased by 10%, from 2.65 million wet metric tons (WMT) in the first quarter last year to 2.39 million WMT in the same period this year, revenue from the sale of nickel ore increased 17% year-on-year, from P2.85 billion in 2021 to P3.32 billion in 2022, as the weighted average realized price of ore sold increased 22% from $22.21 per WMT last year to $27.03 per WMT this year. Breaking down the ore sales, the Company exported 651 thousand WMT of saprolite and limonite ore to Japanese and Chinese customers at the weighted average price of $46.90 per WMT in the first three months of the year, compared to 845 thousand WMT at $45.60 per WMT in the same period last year. Likewise, the Company delivered 1.74 million WMT of limonite ore to the Coral Bay and Taganito HPAL plants, the prices of which are linked to the LME, and realized an average price of $11.80 per pound of payable nickel. This compares to 1.81 million WMT at $7.96 per pound of payable nickel in 2021. Expressed in US Dollar per WMT, deliveries to the two HPAL plants generated $19.58 and $11.29 in the first quarter of 2022 and 2021, respectively. Furthermore, as a result of higher LME prices, the Company recognized gain from its equity share in its investments in the two HPAL plants in the amount of P305 million in the first quarter of 2022, a 166% increase compared to P115 million gain in the same period last year. The realized Peso to U.S. Dollar exchange rate for ore sales was P51.51 compared to P48.38 in the prior year. Total operating cash costs increased by 8% year-on-year to P1.67 billion from P1.55 billion in 2021. On a per WMT of ore sold basis, total operating cash costs increased to P701 per WMT compared to P583 per WMT last year. On the Company’s foray into the renewable energy business through Emerging Power, Inc., Mr. Zamora had this to say: “We remain on track to complete Phase 3B of the Subic Solar Project, which would bring its total capacity to 100MW by May of this year, and expect to begin work on Phase 4 towards the latter part of the year, leading to a total capacity of 200MW by 2024. Further, we have made significant headway with respect to our 1,000MW renewable energy pipeline.” Mr. Zamora added, “We continue to monitor extraneous factors such as the lockdowns in China that may affect the global supply chain and impact our businesses as well.”   Article courtesy of the Philippine Stock Exchange

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