Nickel Asia Income Rises
In spite of the pandemic, the country’s largest producer of lateritic nickel Listed Nickel Asia Corp. saw an increase of its net income by 18 per cent to P3.13 billion on improved global market conditions. This was for a period of nine months.
In a regulatory filing, Nickel Asia said earnings before tax, interest, amortization, and depreciation increased to 24 per cent to P5.93 billion while revenues climbed up to 11 per cent to P15.11 billion.
The growth of the business was attributed to the improved ore export costs, especially during the third quarter, on the back of a recovery in the Chinese stainless steel market.
“A strong rise in ore prices was more than enough to offset the drop in shipment volumes during the first nine months,” Nickel Asia president and CEO Martin Zamora said. “We remain cautiously optimistic our shipment volumes for the year will come close to the levels we had in 2019. Weather conditions in the southern part of the country, where three of our mines are located, have been favourable, allowing for an extended shipment season,” he said.
In general, Nickel Asia was able to sell an aggregate 14.03 million wet metric tons (WMT) of nickel ore, as compared to the 15.29 million WMT sold in 2019.
When it comes to costs, the company realized an average of $5.99 per pound of payable nickel on its shipments, lower than the average price of $6.06 per pound of payable nickel in 2019. Meanwhile, the export sales came off better at $30.06 per WMT as a strong recovery in ore export prices, following the Indonesian ore export ban which took effect in January this year.
On a mixed basis, the average price for both sales of ore exports and ore deliveries totalled $19.76 per WMT compared to $16.03 per WMT last year.