MANILA, Philippines - Listed mining holding firm Oriental Peninsula Resources Group (ORE) posted a net income of P467.37 million last year, a reversal of the P6.62-million loss incurred in 2010, on strong sales.
The turnaround was attributed to the robust performance of its nickel unit Citinickel Mines & Development Corp., which owns and operates two nickel mining projects in Palawan, located in the municipalities of Sofronio Espanola and Narra.
ORE chalked in revenues of P1.13 billion during the period as Citinickel started commercial operations in March last year.
In a financial report submitted to the Philippine Stock Exchange, ORE said it is targeting to increase its production to three million tons this year from one million tons as it aims to effect 55 shipments of nickel ore.
Analysts said the combination of higher volumes and higher fuel prices will fuel a surge in full year revenues and net income for the company.
To achieve its target, ORE said it would be aggressive in providing necessary financial support to Citinickel for use in improvement of necessary equipment and facility in the mine sites in Palawan.
Citinickel supplies China with 0.9 percent to one percent nickel grade and 1.5 percent nickel grade. The demand from Australia, on the other hand, is to supply 1.5 percent of nickel.
ORE is also considering establishing a ferro-nickel plant.
Citinickel is the holder of a 25-year mineral production sharing agreement issued by the Department of Environment and Natural Resources covering 2,176 hectares.