Nickel Asia profit down 26% in H1

Listed Nickel Asia Corp. saw its net income for the first semester of the year decline by 26 percent as the COVID-19 pandemic and strict quarantine measures took a heavy toll on mine operations.

In a regulatory filing, Nickel Asia said its net income for January to June amounted to P777.47 million, lower than the P1.05 billion it earned in 2019.

Earnings before interest, tax, depreciation and amortization decreased eight percent to 2.08 billion. Total revenues also went down 11 percent to P6.64 billion.

“The lower earnings during the first six months of the year was due primarily to the impact of the strict quarantine implemented during the months of April and parts of May, thereby affecting ore shipments at three of our four operating mines,” Nickel Asia president and chief executive officer Martin Zamora said.

The operations affected during the period were the Taganito, Cagdianao and Hinatuan mines.

The company also reported a consolidated net loss of P71 million from its equity investments in Coral Bay Nickel Corp. and Taganito HPAL

Nickel Corp., lower than the P81 million net loss the previous year.

Overall, Nickel Asia sold an aggregate 7.29 million wet metric tons (WMT) of nickel ore, down 20 percent.

“Despite the shortfall in our shipments during the first half, we are cautiously optimistic that shipment volumes for the year will be close to the levels we had in 2019. Moreover, we are also seeing a nice recovery in ore export prices,” Zamora said.