DMCI Mining reported that its net income soared 409 percent to P1.2 billion in the first half of 2021 from P241 million in the same period last year due to record shipments and higher nickel prices.

In a statement, DMCI Mining said its revenues in the first half grew 123 percent to P2.7 billion in the first semester of the year from P1.2 billion in the same period of 2020.

Earnings include a non-recurring income of P247 million mainly due to deferred tax liability remeasurement and 2020 income tax adjustment under CREATE Act.

DMCI Mining shipped 1.24 million wet metric tons (WMT) of nickel ore from January to June, an all-time high for the company and 45 percent higher compared to the 853,000 MWT shipped during the same period last year.

Of the total shipments, 718,000 WMT came from Berong Nickel Corporation (BNC) while Zambales Diversified Metals Corporation (ZDMC) contributed 522,000 WMT.

“This is the first time that both our mining assets are operating at full capacity. We expect shipments to remain strong in the second half since we were able to extend Berong’s mine life from June until Q3 this year,” said DMCI Mining President Tulsi Das C. Reyes.

Average nickel grade of the shipped nickel dropped fro

m 1.37 percent to 1.39 percent while average selling price per metric ton rallied 57 percent from US$28 to US$44 owing to China’s surging stainless steel production, strong demand for electric vehicles and the continuing Indonesian nickel ore export ban.

“The uptrend in nickel prices is likely to continue in the coming months because of production-consumption gaps. Major nickel producers are seeing lower output because of COVID-19 lockdowns and various operating issues but industrial manufacturing is still ramping up,” Reyes added.

Nickel is mainly used in stainless steelmaking, but is also a vital ingredient for the lithium-ion batteries used to power electric vehicles (EV).

The International Energy Agency estimates that global EVs will grow 14 times to 145 million by 2030.