Marcventures’ 9-month earnings sharply higher
Publicly listed Marcventures Holdings Inc. (MARC) reported a 435-percent surge in its net profit for the nine months to end-September as demand for ore nickel remained strong amid depressed prices.
Net profit was pegged at P989 million as its operating unit, Marcventures Mining and Development Corp. (MMDC), recorded an increase in ore shipments of more than fourfold.
MMDC said in a statement that nine-month revenues jumped 239 percent year-on-year to P2.03 billion, which equates to an earnings per share of P0.57.
This accounts for a total of 41 shipments completed, which represent a volume of about 2.28 million wet metric tons of nickel ore. Volume rocketed 334 percent.
“As operations began in May, these record results were achieved in less than five months and in the face of weak commodity prices,” the company said. “Demand for MMDC ore continues to remain very strong.”
MMDC added that, weather permitting, shipments would continue through the remainder of the year.
Last August, MARC said its stockholders have approved the increase in MMDC’s capital stock to P1 billion from P20 million.
The holding firm also said it is subscribing to P200 million worth of shares in the mine operator.
MMDC has declared cash dividends of that amount in favor of its parent firm which will be used to help jack up the authorized capital stock.
The funds are to be used for working capital and capital expenditures to expand output volume and to upgrade facilities, MARC said.
MMDC holds a mineral production sharing agreement covering an area of 4,799 hectares in Cantilan, Surigao del Sur.
MMDC has identified nickel ore as the primary mineral that will be extracted and sold to third parties, citing the abundance and favorable characteristics of nickel within the mining property.
