Metal prices boost Nickel Asia bottom line by 104%

The significant increase in metal prices boosted Nickel Asia Corp.’s (NAC) profit in the nine-month period amid tight supply. Its net income surged to P5.19 billion, up 103.5 percent from P2.55 billion a year ago.

The mining company reported a 35-percent surge in revenues, which reached P22.83 billion.

Revenues from saprolite and limonite ore took the lion’s share in the top line, soaring by 41 percent to P20.96 billion.

“NAC’s strong earnings growth was driven by a notable increase in saprolite ore export prices,” the listed firm said in a disclosure on Wednesday.

Nickel Asia’s operating mines sold 13.89 million wet metric tons (WMT) of nickel ore, up 2 percent.

The weighted average sales price of nickel ore jumped by 39 percent to $26.55 per WMT.

NAC realized an average exchange rate of P56.81 per US dollar from nickel ore sales, reflecting a 1-percent drop.

The company exported 8.32 million WMT of saprolite and limonite ore at an average price of $37.52 per WMT. This rose from 8.07 million WMT sold at an average price of $24.74 per WMT.

NAC also delivered 5.57 million WMT of limonite ore to the Coral Bay and Taganito High Pressure Acid Leach (HPAL) plants, 1 percent higher.

“Nickel ore prices remain elevated amid tight supply, which continues to positively impact our performance. We expect this tightness to persist as Indonesia enforces stricter policies on production permits,” said Martin Antonio Zamora, president and CEO of NAC.

Nickel Asia’s renewable energy arm, Emerging Power Inc. (EPI), saw its output rise by 2 percent to 171,279 megawatt-hours.

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Meanwhile, EPI’s earnings before interest, taxes, depreciation and amortization decreased by 16 percent to P617 million. This was due to a lower weighted average tariff caused by a notable drop in spot market prices for electricity.

Meanwhile, its joint venture with Japanese firm Sumitomo Metal Mining Co., Ltd.—Cordillera Exploration Co. Inc. (CEXCI)—is committed to advancing exploration activities in the Cordon Project in Isabela through year-end.

CEXCI has received encouraging results confirming the presence of gold-bearing veins and porphyry copper-gold mineralization in the area.

“The positive results from CEXCI’s exploration further strengthen our diversification into copper and gold, and EPI’s continued ramp-up of solar projects drives additional growth,” Zamora said.

“Building on this momentum, we anticipate closing the year with strong operational and financial results, delivering sustained value to our stakeholders,” he added.