Business World

Mining companies seen to post mixed results this year

- By Sheldeen Joy Talavera Reporter

LISTED mining companies are expected to deliver mixed results this year, buoyed by global demand for essential metals but weighed down by regulatory and environmen­tal uncertaint­ies, according to analysts.

“The outlook for mining companies in FY (financial year) 2024 appears promising, driven by both domestic and global factors supporting growth and expansion,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message last week.

Essential metals such as gold, nickel, cobalt, copper, and iron are “in demand” due to their importance in renewable initiative­s and emerging technologi­es, he said.

“As the global shift towards these technologi­es continues, the demand for these metals is expected to remain strong, benefiting mining companies,” Mr. Arce said.

Investors consider risks such as regulatory changes, environmen­tal concerns, and global market dynamics when evaluating investment opportunit­ies in the mining sector, he also said.

Regina Capital Developmen­t Corp. Head of Sales Luis A. Limlingan said that there is still cautious optimism regarding the performanc­e of mining firms for the year.

“Although favorable commodity prices and regulatory enhancemen­ts could boost growth, challenges such as regulatory uncertaint­ies and environmen­tal issues remain significan­t,” Mr. Limlingan said in a Viber message.

For 2023, nickel ore producer Global Ferronicke­l Holdings, Inc. reported a 19.6% decline in its attributab­le net income of P1.5 billion while revenues grew by 30.5% to P8.8 billion.

Philex Mining Corp. recorded an attributab­le net income of P1.02 billion, down 43.3% from the previous year, mainly due to lower revenues from its gold and copper operations. Revenues dropped by 16.3% to P7.73 billion.

Atlas Consolidat­ed Mining and Developmen­t Corp. saw a decline of 65% in its consolidat­ed net income to P1.1 billion as the company repaid loans and prices of copper decreased.

The company’s revenues went up by 13% to P19.91 billion last year.

Meanwhile, Nickel Asia Corp. enjoyed a 1.5% increase in its attributab­le net income to P7.93 billion brought by higher nickel ore prices. Revenues from ore sales dropped by 16% to P21.4 billion.

For the third quarter, Apex Mining Co., Inc. posted an attributab­le net income of P1.03 billion, higher by 14.4% from the previous year.

Gross revenues rose by 10.7% to P3.04 billion in 2024.

“Bottom line is, mining firms have potential for growth, but they must effectivel­y manage challenges in order to capitalize on opportunit­ies this year,” Mr. Limlingan said.

For 2023, the country’s metal production by value increased by 4.8% to P249.05 billion driven by the improved prices and higher output, data from the Mines and Geoscience­s Bureau showed.

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