Nickel Asia posts P3.54-B net income in 2011

Nickel Asia Corporation posted P3.54 billion in net income for 2011, up 129 percent higher P1.55 billion a year earlier.   “Higher earnings performance for 2011 was the result of improved nickel process combined with significantly higher sales of nickel ore,” Nickel Asia said in a statement to the Philippine Stock Exchange.   On a per share basis, net income stood at P2.64 compared to P1.49 reported a year earlier, according to the company.   Revenues from nickel ore amounted to P12.69 billion, or 52 percent higher than P8.24 billion year-on-year.   The miner said nickel shipments last year surpassed the 10 million wet metric tons (WMT) mark for the first time.   “Total volume of nickel ore sold and delivered from the company’s four operating mines reached 10.39 WMT, compared with 8.34 WMT in 2010. This is the highest volume of sales achieved by the company in its history,” the statement read.   Aside from higher volume, Nickel Asia noted that nickel ore prices last year increased to $10.53 per pound of medium and high-grade saprolite and limonite ore against 2010’s $9.61.   Still, the company posted a “one-time casualty loss” totaling P239 million following an insurgency attack in its largest mine site Taganito last October.    However, the loss has been offset by an “inventory write-up” of P572 million from its Rio Tuba mine and a P434 million dividend from Coral Bay Nickel Corporation, the company said.   Nickel Asia said that within the first half of the year, it will start drilling for gold and copper at its Manmanok property— under its subsidiary Cordillera Exploration Co. Inc.—in Apayao province.   Though the price of nickel has dipped to $8.18 per pound as of the March 27 spot price, the company expects better revenues for 2012.   “While the nickel price today is lower than our average realized price in 2011, the improved sales terms that we have obtained on the basis of a higher percentage of payable nickel on our shipments in Japan, as well as continued strong price levels at some of our ore products to customers in China, will mitigate any near-term weakness,” Nickel Asia president and CEO Gerard Brimo noted in the same statement.   Early this year, the company shipped 880,000 WMT nickel ore to China. —With Rouchelle R. Dinglasan/VS, GMA News