NICKEL ASIA REPORTS GAINS OF P2.3B

NickelAsia Corporation (NAC) (PSE:NIKL) posted a net income of P2.3 billion in the first nine months of the year, up 20 percent from its year-ago level of P1.92 billion.

Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to P5.93 billion compared to P4.79 billion in the prior year. 

The jump in earnings during the first nine-months of the year was due primarily to much improved ore export prices, particularly during the third quarter, on the back of a recovery in the Chinese stainless steel market.

As a result of higher ore prices, total revenues of the company increased by 11% to P15.11 billion from P13.66 billion during the same period last year. 

The company realized an average of $5.99 per pound of payable nickel on its limonite ore shipments to the two HPAL plants, the pricing of which are linked to the LME.

This compares to an average price of $6.06 per pound of payable nickel sold in 2019. Ore shipments to the HPAL plants accounted for 46% of the Company’s total shipments during the first nine-months.

As LME prices remained flat during the period, the Company benefitted mainly from the surge in ore export prices. The remaining 54% of the Company’s total shipments are ore exports to China and Japan.

The average realized export price during the first nine-month period was $30.06 per WMT, 38% higher compared to $21.81 per WMT in 2019. On a combined basis, the average price received for sales of both ore exports and ore deliveries to the two plants in 2020 was $19.76 per WMT compared to $16.03 per WMT in 2019. In terms of shipment volumes, the Company sold an aggregate 14.03 million wet metric tons (WMT) of nickel ore as against 15.29 million WMT in the previous year.

Limonite ore deliveries to the two processing plants were higher at 6.52 million WMT compared to 6.34 million WMT last year. On the other hand, ore export shipments declined, lower by 16% to 7.50 million WMT from 8.95 million WMT last year.