DMCI Mining H1 net income down 19%

DMCI Mining Corp. posted a net income of P254 million during the first half of 2019, down 19% from P316 million a year earlier amid declining nickel prices.

In a disclosure to the Philippine Stock Exchange on Tuesday, parent DMCI Holdings Inc. said its mining unit recorded flat revenue growth of P985 million as "… shipment of mostly lower grade nickel commanded lower average selling price."

Average selling price during the period fell 28% from $39 to $28, DMCI said.

In January to June, DMCI Mining shipped 681,000 wet metric tons (WMT) valued at P986 million, up 41% from 483,000 WMT a year earlier.

All of the shipments came from Berong Nickel Corp. and were shipped to China, according to DMCI.

DMCI Mining’s other nickel asset, Zambales Diversified Metals Corp. (ZDMC), has complied with the conditions set by the Department of Environment and Natural Resources (DENR) for lifting its November 2018 suspension order.

“The Mines and Geosciences Bureau reviewed the remedial actions taken by ZDMC last April 2019, and confirmed that all the specified conditions of DENR have been met,” DMCI Mining president Cesar Simbulan Jr. said.

“MGB has also recommended the lifting of the suspension. Hopefully, the DENR central office will reach a decision before the end of this year,” Simbulan said. —Ted Cordero/VDS, GMA News