2 weeks ago
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Nickel Asia Corporation (NAC), the country’s top nickel producer, reported an almost 60 percent drop in attributable net income to ₱1.52 billion last year from the ₱3.75 billion earned in 2023.
In a disclosure to the Philippine Stock Exchange, the firm said this includes a P1.55 billion provision for its geothermal investment in Naujan, Oriental Mindoro.
This investment, made through its subsidiary, Mindoro Geothermal Power Corporation (MGPC), was primarily used for drilling exploration wells between 2015 and 2017.
Excluding the provision, the attributable net income was ₱3.07 billion, a decrease of 18 percent from ₱3.75 billion the previous year.
Revenue from ore sales decreased by 8.5 percent year-on-year to ₱19.56 billion from ₱21.38 billion, which marks a significant improvement compared to the 16 percent year-on-year drop in the first half of 2024.
“The rebound in the second semester can be attributed to the Indonesian market purchasing one-third of the ore exports of NAC. The continued demand from Indonesia presents a positive outlook for ore prices,” Nickel Asia said.
The weighted average nickel ore price dropped 14 percent to $20.04 per Wet Metric Ton (WMT) from $23.30 per WMT in the previous year. The Company realized P57.36 per US dollar from ore sales, reflecting a 2.8 percent increase from P55.78 last year.
Operating mines sold 17.02 million WMT of nickel ore, a 3.5 percent increase from last year’s 16.45 million WMT. Breaking this down, the Company exported 9.64 million WMT of saprolite and limonite ore at an average price of $27.34 per WMT from 8.92 million WMT at $30.59 per WMT in the same period last year.
The remaining 7.38 million WMT of limonite ore were delivered to the Coral Bay and Taganito high-pressure acid leach (HPAL) plants, the prices of which are linked to the London Metal Exchange (LME).
These deliveries realized an average price of $10.50 per WMT equivalent to 9.3 percent of LME. This compares to last year’s 7.53 million WMT at $14.66 per WMT equivalent to 9.7 percent of LME.
NAC reported losses from its equity share in the two HPAL plants in the amount of ₱897.93 million against losses in the prior year at ₱1.04 billion.
Meanwhile, NAC’s renewable energy subsidiary, Emerging Power, Inc. (EPI), continues to grow its portfolio and is on track to achieving its 1-GW target by 2028.
By the end of 2025, EPI aims to achieve a gross capacity of over 400-MWp, with projections of over 800-MWp by the end of 2026.
In the nickel mining sector, the Company recently commenced shipments from its Manicani mine in Eastern Samar and South Upper Guintalunan mine in Palawan, while continuing to ramp up operations at its Dinapigue mine in Isabela.
These three projects are expected to significantly contribute to the growth of NAC's upstream nickel mining business in the coming years.
Additionally, through its subsidiary, Cordillera Exploration Co. Inc. (CEXCI), NAC has also begun exploratory drilling at the Marian Project, with plans to establish a copper-gold mine.
“The increasing demand for nickel and other critical minerals, as well as the global shift towards cleaner forms of energy, place us in a unique position to support both agendas.
“As we continue to grow, it is imperative for us to continuously enhance our processes and improve our operational efficiency,” said NAC President and CEO Martin Antonio G. Zamora.
He added that, “Our focus on solar and upstream mining is a critical part of that optimization, and it reflects the dynamic leadership at NAC.”
