MANILA, Philippines — Lower nickel ore prices amid an oversupply in Indonesian output caused the full-year earnings of Nickel Asia Corp. (NAC) by 53 percent to P3.7 billion in 2023 from P7.9 billion previously.
In a stock exchange filing on Wednesday, NAC said the weighted average nickel ore sales price fell by 20 percent to $23.30 per wet metric ton (WMT) from $29.17 per WMT a year earlier.
The price decline likewise caused a P1-billion loss in NAC’s equity interests in the Coral Bay and Taganito high pressure acid leach (HPAL) plants in Palawan and Surigao del Norte.
Andre Mikael Lu Dy, NAC vice president for treasury and investor relations and sales, also cited weak demand from China among the factors that pulled down the company’s earnings.Further, revenues from ore sales also dropped 16 percent to P21.4 billion from P25.5 billion.
Industry challenges
“Despite the challenges in the global nickel industry, we remain on track to achieve our ambition of becoming a premiere environmental, social and governance investment and a Top 25 company in the [Philippine Stock Exchange] by 2025,” NAC president and CEO Martin Antonio Zamora said.
READ: Nickel Asia sees better earnings in 2024
The company’s operating mines sold a combined 16.5 million WMT of nickel ore, an increase of 3 percent.
In total, NAC exported 8.9 million WMT of saprolite and limonite ore at an average price of $30.59 per WMT against 8.1 million WMT at $39.39 per WMT in 2022.
READ: Weak China demand hits Nickel Asia’s profits
It likewise shipped 7.6 million WMT of limonite ore to the Coral Bay and Taganito HPAL plants at an average price of $14.66 WMT.
This is lower than the 7.8 million WMT delivered in 2022 at $18.72 per WMT.
Dy previously said they were expecting better earnings this year due to a projected improvement in benchmark nickel prices at the London Metal Exchange.