MANILA -Mining company Nickel Asia Corp. is projecting earnings to improve in 2024 after reporting a substantial decline in net income in the first nine months, counting on a potential rebound in nickel prices.
“We think by next year, there’s some potential for a better performance with potential revenue upside from a relief in nickel LME (London Metal Exchange) price amid the volatility we’re seeing,” Nickel Asia vice president for treasury and investor relations and sales Andre Mikael Dy said.
Apart from improved pricing, Dy said the company could improve its bottom line by reducing costs and improving efficiencies.
Supply situation
Dy said the listed firm would benefit from the tightening of nickel ore supply in Indonesia as some nickel smelters are instead procuring nickel ore from neighboring countries like the Philippines.
“This is also timely because Indonesian elections will take place early next year and until now, there [have] been indications that the tightening of supply in Indonesia may linger,” he said.
“There is still no visibility when the mining quotas or the equivalent of permit agency in Indonesia will speed up in their processes. One thing is for sure, there remains to be the elections that need to be resolved first,” he added.
Nickel Asia reported earlier that its nine-month net income attributable to the equity holders of the parent firm had plunged by 47 percent to P3.6 billion while revenues dropped by 10 percent to P19.3 billion. INQ