Strong nickel demand buoys Oriental Peninsula Q3 profit

MANILA, Philippines - Oriental Peninsula Resources Group Inc. (ORE) reported a net profit of P 189.73 million for the third quarter of 2011.

The holding company attributes the significant gains to its nickel mining company, Citinickel Mines and Development Corp., which reported robust gains since it started commercial operations in March of this year.

In a disclosure to the Philippine Stock Exchange (PSE), ORE also posted third quarter 2011 total gross revenue from mining amounting to P210.770 million. No revenue was posted for the same period last year since Citinickel was still in its pre-operational stage at the time.

ORE president Caroline Tanchay disclosed that the company sold an aggregate of 359,468 WMT of nickel ore in the third quarter of 2011. Of the total sales, 307,301 WMT were sold to Chinese smelting firms, while 52,167 WMT were earmarked for its Australian client.

ORE has a 94 percent equity interest in Citinickel, which owns and operates two nickel mining projects in Palawan, located in the municipalities of Sofronio Española and Narra.

In a significant development, Citinickel has also advanced royalty shares for five Palawano’s tribal indigenous groups communities situated within the periphery of its mining sites. The advanced royalties have been earmarked for various community development projects envisioned to provide long-term livelihood opportunities for the region’s indigenous groups.