Marcventures swings to profit on higher nickel tonnage
Marcventures Holdings, Inc. (MHI) posted a turnaround in its consolidated net income for 2019 to P37.8 million, compared with a net loss of P388.8 million in the previous year, due to higher nickel tonnage.
In a disclosure to the stock exchange, MHI President Isidro C. Alcantara, Jr. said the company’s performance in 2019 could be credited to increased tonnage, and reduction of mining and overhead costs by almost 30%.
“Early and strict implementation of mining protocols under the Mines and Geosciences Bureau (MGB) and respective local government units (LGUs) allowed normal though delayed operations despite the coronavirus disease 2019 (COVID-19) pandemic,” he said.
Meanwhile, the company said its wholly owned subsidiary, Marcventures Mining and Development Corp. (MMDC) posted a net income of P316.9 million for the month of June.
“The parent company had to step in for 2019 and made wholesale changes by fully revamping mine management and made changes in the MMDC’s corporate management to recover profitable operations,” Mr. Alcantara said.
The company is hopeful that it will experience further increases in its tonnage and better prospects with the combination of cost efficiencies and better nickel prices.
MHI added it plans to develop its other mining property in Surigao del Sur under BrightGreen Resources Corp.
“The company is also undertaking activities for its Bauxite Properties, the aluminium raw material, in Samar prior to applying for their environmental compliance certificate (ECC) and approval of mining project feasibility,” the disclosure said.
On Tuesday, shares in MHI rose 10.81% or P0.08 to close at P0.82 per share.