Publicly listed Nickel Asia Corp. is set to continue growing for the rest of 2011 after a turnaround in the first three months, given higher production and sustained high nickel prices.
At the same time, Sumitomo Metal Mining Co. Ltd. (SMM) of Japan is also expected to push through with a partnership with the firm in Cordillera Exploration Co. Inc. (Cexci), which has mineralized properties in northern Luzon.
“Our tonnage should be higher, we have 10 million tons of ore contracts, which is higher than last year. It’s both higher tonnage, and nickel prices as well,” company president and CEO Gerard H. Brimo said after leading a forum on mining at the Asian Institute of Management last week.
Much depends on the nickel price, Brimo said.
It’s still at a healthy level and there is no slowdown in demand. I think it can be sustained,” he explained.
Nickel Asia posted a turnaround in the first quarter of the year with profits of P428 million from a net loss of P102 million in the same period in 2010.
Total revenues in the first quarter grew 81 percent to P2.05 billion from P1.13 billion in the comparative period last year, propped up by slightly higher shipment volumes and much higher nickel prices.
The miner shipped 1.425 million wet metric tons (wmt) of nickel ore during the first quarter, 9 percent higher than the 1.303 million wmt in the comparative period in 2010.—Riza T. Olchondra