Nickel Asia Nets ₱7.81B In 'Defining Year' 2021

NAC today announced its audited financial and operating results for 2021 with attributable net income (net of minority interests) at P7.81 billion compared to P4.07 billion reported in 2020. Earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to P14.40 billion compared to P9.47 billion in the prior year.

Photo Insert: NAC President and CEO called 2021 a 'defining year' for the company.

The higher net income was the result of higher ore sales prices. NAC sold a total of 17.94 million wet metric tons (WMT) of nickel ore at the weighted average realized price of $29.13 per WMT in 2021, compared to 18.20 million WMT at $22.46 per WMT in 2020.

Accordingly, total revenue increased by 26% to P27.40 billion from P21.77 billion in the prior year.

Breaking down the ore sales, the Company exported 10.79 million WMT of saprolite and limonite ore to customers in Japan and China at the average price of $40.40 per WMT in 2021.

This compares to 10.02 million WMT at $33.99 per WMT in 2020. Likewise, NAC delivered 7.14 million WMT of limonite ore to the Coral Bay and Taganito HPAL plants, the prices of which are linked to the LME, and realized an average price of $8.36 per pound of payable nickel.

This compares to 8.18 million WMT at $6.22 per pound of payable nickel in 2020. Expressed in US Dollar per WMT, deliveries to the two HPAL plants generated $12.11 and $8.33 per WMT in 2021 and 2020, respectively.

Following higher Nickel LME prices, the Company recognized a gain from its equity share in its investments in the two HPAL plants in the combined amount of P557.9 million in 2021, compared to P190.4 million in the prior year.

Furthermore, due to the stronger US Dollar against the Peso, NAC recognized net foreign exchange gains from its US Dollar-denominated net financial assets in the amount of P558.9 million in 2021, a major turnaround from net foreign exchange losses of P450.8 million in 2020.

Total operating cash costs increased by 11% year-on-year to P11.73 billion from P10.61 billion in the prior year. On a per WMT sold basis, total operating cash costs increased to P654 per WMT compared to P583 per WMT in 2020.

“A defining year- that is how 2021 was for our Company”, said Martin Antonio G. Zamora, President and CEO of Nickel Asia Corporation (NAC; PSE: NIKL).

“In the face of the second year of the COVID-19 pandemic and the continuing economic and social hardships it has brought to our country and our communities, we remained focused on our people and our business objectives, on our diversification into renewables through our subsidiary Emerging Power, Inc. (EPI), and we even crafted and adopted a new vision for our future.”

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