Nickel Asia shipments get boost from weak peso, improved prices

NICKEL ASIA Corp. on Tuesday said the estimated value of shipments jumped 16% in the first nine months of 2017, as nickel prices improved and the peso weakened against the US dollar.

In a statement, the country’s top nickel miner said value of its ore shipments in the nine months ending September grew to P11.65 billion from the P10.01 billion a year ago.

“The increase is mainly due to higher prices for its nickel ore sales combined with a weaker peso exchange rate,” said Nickel Asia, adding the peso-dollar exchange rate for ore sales was P50.29:$1, compared to P46.88:$1 in the same period last year.

Nickel Asia sold 14.24 million wet metric tons ( WMT) of nickel ore from its four operating mines during the January to September period, although 6% lower than the 15.18 million WMT during the same period a year ago.

For the first nine months of 2017, the miner noted the estimated nickel price on 7.97 million WMT of ore exports to Japan and China averaged $24.35 per WMT, compared to the $19.37 per WMT on 9.74 million WMT of ore sales last year.

For low-grade limonite ore sold to both the Coral Bay and Taganito processing plants, the prices averaged at $4.49 per pound of payable nickel on 6.27 million WMT sold during the January to September period.

“Improved prices was more than enough to offset slightly lower shipments experienced during the first nine-months of the year,” Gerard H. Brimo, Nickel Asia president and CEO, was quoted as saying in the statement. “We see strong support for prices at current levels, as global demand for commodities, including nickel, continue to improve.”

The Taganito mine accounted for 44% of total shipments. It shipped 2.66 million WMT of saprolite ore, and delivered 3.62 million WMT of limonite ore to the Taganito high- pressure acid leachate ( HPAL) plant.

The Rio Tuba mine represented 31% of total shipments, which comprised 1.58 million WMT of saprolite ore and 2.82 million WMT of limonite ore, including 2.65 million WMT of ore delivered to the Coral Bay HPAL plant.

Total shipments from Hinatuan reached 2.03 million WMT compared to 2.22 million WMT last year, while the Cagdianao mine shipped 1.52 million WMT versus 1.69 million WMT last year.

“Shipments from the Company’s Hinatuan and Cagdianao mines were both lower during the period due to a late start of shipments this year as a result of prolonged heavy rains,” Nickel Asia said.

Shares in Nickel Asia were down 2.58% to close at P6.80 apiece. —