DMCI Mining profit down 17% in January-September

MANILA, Philippines — Depletion of the Berong Mine and lower average nickel grades sold pulled down the nine-month net income of DMCI Mining Corp. by 17 percent.

In a disclosure to the Philippine Stock Exchange yesterday, DMCI Mining said its net income from January to September amounted to P1.17 billion, lower than the P1.41 billion in the same period last year.

The profit decline was expected because of the depletion of the company’s Berong mine late last year, DMCI Mining president Tulsi Das Reyes said.

“Fortunately, the bullish nickel market allowed us to ship even the low-grade inventory of Berong,” he said.

“Strong nickel prices and local currency weakness also moderated the impact of lower shipments on our bottom line,” he said.

For the third quarter alone, net income tumbled by 56 percent to P80 million due to the combined effect of 50 percent decline in shipment, flattish nickel grade sold, 31 percent jump in selling prices and favorable average foreign exchange rates.

“Out of 41 operating mines, 18 to 21 mines are in Surigao. The mining price went down naturally up to October. Surigao just kept blasting out shipment. What happened was we saw a decline of 10 to 15 percent,” Reyes said.

Total shipments declined at a slower pace during the first nine months as the Berong mine did better than expected in the first half.

Consequently, nickel ore shipments fell by 25 percent.