Nickel Asia H1 profit soars to P1.54B

Despite disruptions in the mining sector, Nickel Asia Corp. reported a 64-fold increase in its net income for the first half of the year to P1.54 billion from P24 million a year ago.

The company’s earnings before interest, taxes, depreciation and amortization (Ebitda) also grew by 98 percent to P3.64 billion from P1.84 billion last year.

“The impressive improvement in the financial results of the Coral Bay and Taganito processing plants driven by strong cobalt prices has certainly contributed to our performance in the first half,” said Gerard H. Brimo, company president and CEO.

Nickel Asia’s total share in earnings on its 10-percent stake in the two plants amounted to P55 million, a turnaround from last year’s loss of P484 million.

The shift in the company’s focus to higher-value saprolite ore was also seen as a factor, especially in the first quarter when prices were firmer and the US dollar was stronger.

Nickel ore shipments of the company in the first half reached 8.92 million wet metric tons (WMT), up from last year’s 8.54 million WMT. Meanwhile, saprolite ore shipment reached 4.19 WMT and limonite ore reached 4.74 million WMT.

Ore prices rose to an average of $4.40 per pound of payable nickels on its shipments of ore in the first half of the year from $3.92 per pound in the same period in 2016.

In the meantime, the board of Nickel Asia approved the conversion to equity of a current company loan worth P1.5 billion to subsidiary Emerging Power Inc. (EPI). This will increase Nickel Asia’s stake in the power company to over 90 percent.