Marcventures earnings sharply higher
Nickel mining holding firm Marcventures Holdings Inc. posted a 788-percent growth in net profit last year to P1.02 billion, making up for softer nickel prices by jacking up ore shipment volume and improving cost structure.
Going forward, Marcventures executive vice president Isidro C. Alcantara Jr. and Marcventures Mining and Development Corp. (MMDC) president Arsenio K. Sebial Jr. also reported an increase in mineral reserves—referring to resources known to be economically feasible for extraction—to 53.9 million tons from the previous level of only 18.8 million tons.
This level nearly tripled from the original estimate based on actual production in 2013 and the quality of ore mined in addition to the results of continued in-field drilling.
“This [increase in reserves] was due to the increase in the level of confidence in the limonite resource as demonstrated by the actual results of 2013 mine production and the additional in-fill drillings of MMDC’s mineralized areas,” the company said.
For 2013, Marcventures’ total revenues went up to P2.52 billion from P697.5 million. Even as nickel prices declined, Marcventures grew its ore shipment volume by 260 percent to a record 2.8 million wet metric tons (WMT) from 630,000 WMT in the previous year.
Likewise a significant contributor to the improved bottom line was the 45-percent decrease in cost per ton as efficiency measures took effect and hauling distance levels were shortened, the company said.
Alcantara expressed confidence with the sustained positive performance and potentially higher shipment volume, noting that MMDC’s mines contained both limonite high iron and high-grade saprolite reserves, giving them flexibility in any market situation. This is because pricing of these minerals tends to move in opposite directions in global markets.
Meanwhile, Marcventures paid cash dividends last December amounting to P0.30 per share. This was equivalent to 30 percent of its par value and 50 percent of 2013 net income.
Fully diluted consolidated earnings per share in 2013 went up by nine times to P0.59 per share from the level in 2012.
