Nickel Asia 2012 first half net income down 26% amid low nickel prices

Nickel Asia Corp. saw its net income for the first half drop 26 percent to around P1.27 billion from P1.73 billion last year.

In their disclosure to the Philippine Stock Exchange Monday, Nickel Asia attributed its drop in income to lower prices of nickel in the London metal exchange (LME). This, despite a 19 percent increase in shipment volume.

The nickel price accounting for 2.37 million wet metric tons (WMT) of shipments in the first half of the year averaged at $8.6 per pound of payable nickel, down from $11.48 in the comparable period last year.

Meanwhile, the negotiated price per WMT – which was the price of the balance of shipments in the first half – averaged at $25.87 per WMT compared to $21.73 per WMT last year.

As for shipments, total volume of nickel from their four operating mines reached 5.02 million wet metric tons, up from 4.22 million last year.

Of the total volume, saprolite ore accounted for 1.7 million WMT, while limonite ore reached 3.32 million WMT – from last year’s 1.82 million WMT and 2.40 million WMT, respectively.

As a result of the increase in shipment and mining activities, total cash operating costs and expenses jumped 38 percent to P2.88 billion from P2.08 billion the previous year.

On a per-WMT of ore sold, the company’s total cash costs and expenses increased to $13.37 per WMT from $11.33 per WMT in 2011.

Nickel Asia president Gerard Brimo in the disclosure said “all indications point to the Company achieving record shipment volumes once again this year notwithstanding global macro-economic factors affecting all commodities in general.” — DVM, GMA News

 

Source: http://www.gmanetwork.com/news/story/268572/economy/companies/nickel-asia-2012-first-half-net-income-down-26-amid-low-nickel-prices

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