Top nickel miner Nickel Asia Corporation of the Zamora family reported that its attributable net income fell 79 percent to P202 million in the first quarter of 2024 from the P970 million reported during the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to P1.05 billion against P2.21 billion in the prior year.
Revenues from ore sales declined by 41 percent to P2.09 billion from P3.55 billion last year, due to lower ore prices resulting from the oversupply situation faced by the nickel industry.
“The long-term prospects for the nickel industry remain positive with the market’s growing preference for nickel in the stainless steel and EV battery industries.
“As the global energy transition gains momentum, we expect the nickel oversupply to eventually turn into a deficit and thereafter trigger a resurgence in nickel prices,” said NAC President and CEO Martin Antonio G. Zamora.
Zamora expressed confidence that its three new nickel projects, namely Dinapigue, Bulanjao, and Manicani, will set the stage for growth in their operations. "Together, they are poised to significantly bolster our nickel ore sales volumes in the coming years," he said.
Also, he said that the company's diversification into renewable energy is proceeding according to plan. "With EPI solar capacity now at 172-MWp and almost 400-MWp in the immediate pipeline, our role as stewards of our country’s natural resources takes on even greater significance,” he added.
Nickel Asia’s operating mines sold a combined 2.61 million wet metric tons (WMT) of nickel ore during the period, slightly higher than last year’s 2.39 million WMT.
The weighted average nickel ore sales price during the period decreased by 48 percent to $13.84 per WMT against $26.80 per WMT in the same period last year. The company realized P56.13 per US dollar from these nickel ore sales, a 2 percent increase from P54.80 last year.
Breaking down the ore sales, Nickel Asia exported 0.61 million WMT of saprolite ore at the average price of $25.57 per WMT during the period from 0.60 million WMT at $50.37 per WMT in the same period last year.
Likewise, it delivered 2 million WMT of limonite ore to the Coral Bay and Taganito high-pressure acid leach (HPAL) plants, the prices of which are linked to the London Metal Exchange (LME) and realized an average price of $7.53 per pound of payable nickel equivalent to $10.27 per WMT. This compares to 1.79 million WMT at $11.98 per pound equivalent to $18.84 per WMT last year.
NAC also recognized losses from its combined equity share in investments in the two HPAL plants in the amount of P193.90 million against P252.12 million income in the prior year.
For the First Quarter of 2024, Emerging Power, Inc.’s (EPI) subsidiary, Jobin SQM, Inc. (JSI) increased generation by 19.3 percent to 44,881-megawatt hours due to a significant increase in overcall capacity.
Last February 28, 2024, JSI successfully opened an additional 72-MWp in Sta. Rita, Subic, thereby expanding capacity to 172-MWp.
Higher revenues and effective cost management kept EBITDA margin at 79 percent and resulted in a 4-percent increase in EBITDA to P160 million.