First quarter nickel ore exports at DMCI Mining surged 26%
2 June 2022
Despite the depletion of its Palawan mine, DMCI Mining Corp., the nickel mining arm of DMCI Holdings, DMCI Mining surged recorded a 26 percent rise in nickel ore shipping in the first quarter of this year
DMCI claimed it shipped a total of 620,000 wet metric tons (WMT) in the first quarter of this year, up from 494,000 WMT in the same period last year, according to a filing with the Philippine Stock Exchange yesterday.
Despite the Berong mine in Palawan being depleted, the increase was achieved because it had a large starting inventory of 389,000 WMT.
In a separate quarterly report, DMCI Mining stated that Zambales Diversified Metals Corp. (ZDMC) accounted for 59 percent of overall shipments, with shipments increasing by 41% from 259,000 to 365,000 WMT.
Total output fell by 43 percent from January to March, to 318,000 WMT from 555,000 WMT, owing to Berong Nickel Corp.’s (BNC) zero production in the fourth quarter of 2021.
ZDMC increased production by 5% to 318,000 WMT, up from 313,000 WMT in the same period last year.
Due to a 13-percent decline in BNC’s sold nickel grade to 1.24 percent from 1.42 percent following mine depletion, the average nickel grade sold reduced by 5% to 1.3 percent.
ZDMC’s sold nickel grade, on the other hand, remained steady at 1.33 percent.
As a result, average selling prices fell 6% to $44 per WMT from $47 per WMT, according to DMCI Mining surged.
Due to lower production and increased exports, overall inventory fell by 72 percent to 154,000 WMT from 543,000 WMT at the end of the quarter.
“We’ve had a great start to the year.” Unfortunately, without a second working asset, we would be unable to continue our output,” said Tulsi Das Reyes, president of DMCI Mining.
“Right now, our biggest issue is obtaining the appropriate permits to grow our activities,” Reyes explained.
DMCI Mining’s core net income increased by 14% to P543 million in the first quarter.
Due to increasing nickel ore exports, revenues climbed by 25% to P1.4 billion.
Due to higher gasoline prices, marketing charges, excise taxes, and royalties, operating expenses increased by 36% to P263 million.
DMCI Mining announced that it plans to extend its mining activities by 3,500 hectares, with a potential nickel deposit of more than 200 million wet metric tons.
“These extra operating assets can sustain the company for at least 50 years once completely permitted,” the company claimed.
