DMCI Mining Corp. reported that its nine-month net income had dropped by 17 percent due to the decline in volume and average nickel grade sold.
Net earnings of DMCI Mining, a unit of Consunji-led DMCI Holdings Inc., fell to P1.17 billion from P1.41 billion a year prior.
Third quarter net income plunged by 56 percent to P80 million from P181 million in the same period last year.
“We expected a severe profit decline because of the depletion of our Berong mine late last year. Fortunately, the bullish nickel market allowed us to ship even the low-grade inventory of Berong,” said DMCI Mining president Tulsi Das Reyes.
“Strong nickel prices and local currency weakness also moderated the impact of lower shipments on our bottom line,” added Reyes.
DMCI Mining’s July to September performance was weighed down by the 50-percent decline in shipment volume, alongside flattish nickel grade sold. This was mitigated by higher selling prices and favorable exchange rate.
For January to September, total shipment plummeted “at a slower pace” as the Berong mine had delivered better than expected results in the first half.
DMCI Mining saw a 25-percent decline in nickel ore shipment to end at 1.09 million wet metric tons (WMT) from 1.45 million WMT for the nine-month period.
Its average selling price increased by 16 percent to $50 (or about P2,800) despite seeing a 4-percent drop in average nickel grade sold.
Total inventory plummeted by 76 percent to 109,000 WMT, 81 percent of which came from the Zambales mine.
Previously, DMCI Mining disclosed the plan to expand its mining operations to another 3,500 hectares, which have a potential nickel resource of over 200 million WMT.INQ