DMCI Mining posts all-time high Q1 profit
DMCI Mining Corporation recorded a 14 percent improvement in first quarter core net income from P477 million in 2021 to this year’s P543 million, its highest for any given quarter.
In a disclosure to the Philippine Stock Exchange, the firm said revenues grew faster at 25 percent from P1.1 billion to P1.4 billion owing to higher nickel ore shipments and favorable foreign exchange rates.
Despite the depletion of its Berong mine, DMCI Mining boosted its total shipments by 26 percent from 494,000 wet metric tons (WMT) to 620,000 WMT on the back of its robust beginning inventory of 389,000 WMT.
“We had a very good start to the year. Unfortunately, without a second operating asset, it would be impossible to maintain our output,” said DMCI Mining president Tulsi Das C. Reyes.
He added that, “Our main challenge now is securing the necessary permits to expand our operations.”
From January to March, total production plunged by 43 percent from 555,000 WMT to 318,000 WMT on the nil production of Berong Nickel Corporation (BNC) and 5 percent uptick in output of Zambales Diversified Metals Corporation (ZDMC), from 313,000 WMT to 318,000 WMT.
Average selling price slipped by 6 percent from $47 to $44 as BNC sold lower-grade nickel amid higher shipments from ZDMC.
DMCI Mining is looking to expand its mining operations by another 3,500 hectares, which have a potential nickel resource of over 200 million wet metric tons.
Once fully permitted, these additional operating assets can sustain the company for at least 50 years.