NAC value of Q1 shipments increases 47%

NICKEL ASIA Corp. (NAC) on Tuesday said the value of its nickel ore shipments increased by nearly half in the first quarter, amid higher nickel ore prices and a weaker peso.

In a statement, the country’s top nickel producer said the estimated value of shipments during the first three months of the year grew 47% to P2.19 billion, from P1.49 billion during the same period in 2016.

“The increase is mainly due to much higher prices for its nickel ore sales coupled with a weaker peso exchange rate,” Nickel Asia said.

The listed miner, however, noted it usually sees low shipment volumes during the January to March period since operations at its Taganaan and Cagdianao mines in northeastern Mindanao do not start until the second quarter.

Nickel Asia said it sold an aggregate 3.05 million wet metric tons ( WMT) of nickel ore from its Taganito and Rio Tuba mines during the period, 12.6% lower than the 3.49 WMT sold a year ago.

In the first quarter, the company focused on the higher-value saprolite ore, while shipments of the lower value limonite ore was limited to deliveries to the Coral Bay and Taganito processing plants.

The estimated realized nickel price on 1.06 million WMT of ore exports in the first quarter of this year averaged $31.34 per WMT, significantly higher than the average of $15.78 per WMT on 1.45 million WMT sold in the same period last year. In 2016, nickel prices hit a 13-year low amid China’s economic slowdown.

Also, the peso- dollar exchange rate for ore sales stood at P50.05 during the first quarter, versus P47.12 during the same period a year ago.