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Business

Nickel Asia net income up 131%

- Zinnia B. Dela Peña -

MANILA, Philippines - Nickel Asia Corp.’s net income grew by 131 percent in the nine months ending September this year, mainly driven by higher nickel ore sales and strong demand from China.

Net earnings amounted to P3.26 billion from January to September 2011 compared with only P1.41 billion a year ago. Revenues climbed by 74 percent to P10.19 billion from P5.87 billion a year earlier.

Total volume of nickel ore sold and delivered from the company’s four operating mines reached 8.25 million wet metric tons (MT) as against 5.78 million WMT in 2010.

“Laterite ore imports into China have been at record levels this year owing to the strong position of nickel pig iron as the primary choice for nickel and iron among stainless steel producers,” said Gerard Brimo, president and chief  executive officer of Nickel Asia.

Of the total volume of ore shipped, 2.85 million WMT was saprolite ore and 5.4 million WMT was limonite ore, of which 2.15 million WMT was shipped to the Coray Bay hydrometallurgical processing plant. The average realized exchange rate during the period under review was 43.10 to the dollar.

The realized LME nickel price applicable to 3.27 million WMT of ore shipped averaged $10.88 per pound of payable nickel as against $9.57 per pound of payable nickel in the same period last year.

The balance of the shipments sold, which was mostly the low and medium grade variety ore sold to Chinese customers, was on the basis of a negotiated price per WMT of ore, which averaged $23.79 per WMT of ore in 2011 compared to $17.86 per WMT of ore in 2010.

Due to the increase in shipment volumes, total cash operating costs and expenses rose by 35 percent from P3 billion to P4.06 billion.

The company’s board approved the declaration of a special cash dividend amounting to P0.15 per share, payable to all holders of common shares on record as of Nov. 11. Payment date is on Dec. 8, 2011.

Meawhile, mining operations at Nickel Asia’s 65 percent owned unit Taganito Mining Corp. has normalized following the raid by armed insurgents in early October. Ore shipment is expected to commence in the first week of November.

Taganito has set aside around P500 million to replace a substantial amount of equipment damaged during the scuffle.

BILLION

CORAY BAY

GERARD BRIMO

MEAWHILE

MILLION

NICKEL

NICKEL ASIA

NICKEL ASIA CORP

ORE

TAGANITO MINING CORP

WMT

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