Nickel Asia says 2012 profit down 37% on stong peso, low LME prices

Nickel Asia Corp., the country’s largest nickel miner, reported a 37 percent drop in net income last year to P2.22 billion, dragged by lower nickel prices and a stronger peso. In a disclosure to the Philippine Stock Exchange, Nickel Asia said revenues fell 9 percent to P11.61 billion with the volume of ore shipments increased by 13 percent to 11.73 million wet metric tons (WMT). Year-on-year earnings per share amounted to P1.10 from P1.76, and EBITDA declined by 27 percent to P5.01 billion. The LME (London Metal Exchange) nickel price—applicable to the company’s shipments of medium- and high-grade saprolite ore as well as limonite ore to the Coral Bay plant—averaged $8.1 per pound of payable nickel against $10.53 in 2011. Total shipments last year consisted of  4.24 million WMT of saprolite ore and 7.49 million WMT of  limonite ore. Higher expenses likewise contributed to the drop in net earnings, the company noted, saying the increase in shipment volumes pushed up operating costs and expenses to P7.57 billion. Nickel Asia disclosed that the construction of the Philippines’ second hydrometallurgical nickel processing plant, adjacent to its 65-percent owned Taganito Mine in Surigao Del Norte, is now substantially completed. Taganito will deliver some 1.8 million WMT of limonite ore to the new plant this year, increasing to around 4.5 million WMT in 2014—the first full year of operation for the processing plant. — VS, GMA News