NICKEL ASIA CORPORATION ANNOUNCES 80% INCREASE YOY IN ATTRIBUTABLE NET INCOME FOR FIRST THREE MONTHS OF 2022
by Philippine Resources - May 09, 2022
Photo credit: Taganito Mining
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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Philippine Resources - November 05, 2021
Nickel Asia Q3 income at P6.17b, up 168% on higher ore sales
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
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
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.
Philippine Resources - May 26, 2022
Legal framework needed for gov’t to invest in nuclear power plant
Department of Energy (DOE) Undersecretary Gerardo Erguiza Jr. said there is a need to amend the Electric Power Industry Reform Act (EPIRA) to enable the government to invest in nuclear power plants. This, as the incoming administration has expressed its support in considering a nuclear power plant to be part of the country’s energy mix. “As of now, the government does not have the ability to put up conventional nuclear power plant because the National Power Corp. does not have mandate on this,” Erguiza said in Filipino during the Laging Handa public briefing Wednesday. With the privatization of the power sector under the EPIRA, the government could not enter into power generation. “But we can align together, with the drafting or putting up of the regulatory framework, we can amend our laws to include the government among those that can fund a nuclear power plant,” he added. Erguiza said that based on studies of the Korean Hydro Nuclear Power Company of South Korea and ROSATOM of Russia, they have found out that the Bataan Nuclear Power Plant (BNPP) can still be rehabilitated. According to ROSATOM, an investment of around USD3 billion to USD4 billion is needed to revive the BNPP. Presumptive President Ferdinand “Bongbong” Marcos Jr. earlier mentioned that part of his energy agenda is to revive the BNPP to become an additional source of clean and cheap power. On the other hand, Erguiza said the government can invest in power generation using small modular reactors, the latest nuclear energy technology, in missionary areas that are not connected to the grid.
Philippine Resources - May 26, 2022
Dutch gov’t backs SMC, Boskalis in P740 billion Bulacan Airport project
Photo credit: Palafox Dutch gov’t backs SMC, Boskalis in P740 billion Bulacan Airport project San Miguel Corporation (SMC) received its strongest support yet for its game-changing P740-billion New Manila International Airport (NMIA) project in Bulacan following the approval of the Dutch government of an export credit insurance (ECI) for the project’s land development phase. The approval comes after over a year of rigorous review of the project’s long-term environmental and social impact mitigation measures to ensure that the multi-billion project is done with sustainability in mind and aligned with the country’s climate ambitions. The Dutch government, represented by Atradius Dutch State Business (DSB), extended the ECI to Royal Boskalis Westminster N.V., to cover its EUR 1.5 billion contract for land development works at the airport project site in Bulakan, Bulacan. The NMIA project is the largest in Boskalis’ over 100-year history, and is also the largest export credit agency (ECA) insurance policy granted in the 90-year history of Atradius. SMC President and Chief Executive Officer Ramon S. Ang thanked the Dutch government for its support to NMIA, a project seen to catalyze sustainable economic growth for the Philippines, especially post-pandemic. It is seen to deliver over a million jobs to Filipinos. “This is a significant milestone not only for San Miguel and the NMIA project, but for the entire country. With this, we are closer to our dream of having a world-class, future-ready, and sustainably-built international gateway, proudly built by Filipinos for the Philippines. This also validates our work with Boskalis to ensure that this project is done right, and will provide long-term economic, environmental, and social benefits to our host communities and Bulacan province,” Ang said. In a statement posted on Boskalis’ international website, its CEO Peter Berdowski, said: “I am very pleased that all the hard work with a large team of experts has been successfully completed (today). For more than a year, we have worked intensively with Atradius DSB to ensure that the construction of the new airport will take place in a socially responsible manner.” He added: “In collaboration with Atradius DSB, the Dutch embassy, we succeeded in developing a broadly supported plan with an eye for the local community and the preservation of biodiversity. I would like to thank all those involved for their contribution to the positive decision of the State.” In the same statement, Atradius DSB Managing Director Bert Bruning said: “This project is unique on so many levels. Firstly, of course, as a very important contract for our client Boskalis, but also for us, as the largest ECA policy in our 90-year history,” he said. “In addition, I am proud of the fact that together with Boskalis and San Miguel, by keeping up the dialogue, we were able to ensure that the project is to meet international standards in the field of environmental and social conditions. In doing so, we have not only contributed to making this wonderful contract possible built also really made a difference together for the local communities and nature.” As part of the ECI process, a large group of experts from San Miguel, together with Boskalis and four renowned consultancy firms, conducted an extensive environmental and social impact assessment in accordance with the highest international standards. This process also included the conduct of impact analyses and compensation packages for adverse effects of the project. “This shows that the airport project and our environmental and social mitigation plans are not only sound, but robust and strong, given they can pass not only international standards but the exacting requirements of the Dutch government. It is another testament to the ability of Filipinos to be world-class,” Ang said. “We will continue to work with Atradius, the banks, experts, national and local government, and all stakeholders to ensure we will build this project in a sustainable manner and in compliance with the highest international environment and social standards,” Ang reaffirmed. added. The airport project will feature four parallel runways, a world-class terminal, and a modern and interlinked infrastructure network that includes expressways and railways. Article courtesy of San Miguel Corp
Philippine Resources - May 25, 2022
CTPCMC Allocates 7.7M for COVID-19 Initiatives
Article by: Roniel R. Arguillas - CTPCMC ICE Officer BAYANIHAN AMIDST THE COVID-19 BATTLE In order to protect and improve the lives of the people within the host and neighboring communities pursuant to Republic Act (RA) No. 11469 or the “Bayanihan to Heal as One Act”, CTP Construction and Mining Corporation or CTPCMC allocated 7.7 million pesos intended for the implementation of projects, programs, and activities (PPAs) on COVID-19 prevention. Through its Social Development and Management Program (SDMP) under Adlay Mining Project (AMP) and Dahican Nickel Project (DNP) the company implemented essential PPAs in the year 2021. The beneficiaries of PPAs were from the Host and Neighboring communities specifically Barangay Adlay, Barangay Dahican and Municipality of Carrascal. With an allocated budget of P2,060,803.78, a Covid-19 Assistance Center was put up to be the second line of support to the host communities if their existing Isolation Rooms have been fully occupied. The company’s employees and their dependents are to be prioritized in the center. The center is offering services which include free isolation room for those who are identified and confirmed as covid-19 patients, free vitamins, and over-the-counter drugs, 24/7 monitoring by health personnel and stand-by oxygen concentrators. Another PPA was the provision of 59 medical equipment and kits to Barangay Adlay. The provision included pulse oximeter, thermal scanner, LCD full digital ultrasound machine, hospital bed and refrigerator as vaccine storage. The turnover was done on December 14, 2021, held at Barangay Hall of Adlay. It was attended by Engr. Charlo R. Basadre CTPCMC Resident Mine Manager, Charid O. Cuadrillero ComRel Manager, Hon. Norberto O. Rubi Jr. Barangay Captain, and Raquel Bungcaras assigned nurse. “These are very essential and a huge help to the key front liners and to the people within the community.” Hon. Rubi said during the turnover. The company also provided two SDMP Emergency Response Vehicles for health-related emergencies.