DMCI Mining profit surges on record nickel ore shipment
DMCI Mining Corp.’s profitability soared during the first semester of the year after recording about a 400-percent increase in its net income to P1.2 billion from P241 million in the same period last year.
In a press release, the subsidiary of Consunji-led DMCI Holdings said it was able to ship 1.24 million wet metric tons of nickel ore between January and June—the highest in the company’s history—against 853,000 WMT shipped previously.
Of the volume, 718,000 WMT came from Berong Nickel Corp., which operates in Palawan, while Zambales Diversified Metals Corp. contributed 522,000 WMT.
“This is the first time that both our mining assets are operating at full capacity. We expect shipments to remain strong in the second half since we were able to extend Berong’s mine life from June until [the third quarter] this year,” said DMCI Mining president Tulsi Das Reyes.
DMCI took advantage of the uptrend in nickel prices as the average selling price went up to $44 per metric ton from $27 per metric ton. This is owed largely to China’s robust stainless steel production and strong demand for electric vehicles in which nickel is considered a vital raw material.
The continuing nickel ore export ban in Indonesia, the Philippines’ strongest competitor when it comes to ore exports, also helped.
“The uptrend in nickel prices is likely to continue in the coming months because of production-consumption gaps. Major nickel producers are seeing lower output because of COVID-19 lockdowns and various operating issues but industrial manufacturing is still ramping up,” said Reyes.
All told, the company’s revenues in the first half rose by 123 percent to P2.7 billion versus P1.2 billion in the same period last year.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.