A surge in nickel ore prices propelled Nickel Asia Corp. to a dramatic increase in profits during the third quarter, more than doubling their attributable net income. The company reported a staggering 115.51% jump, reaching P3.09 billion compared to P1.44 billion the previous year.
This impressive growth was fueled by a significant rise in revenue from nickel ore and limestone sales, climbing 48.35% to P10.52 billion. The key driver? A substantial 39% increase in the weighted average ore price, hitting $26.55 per wet metric ton – a clear indication of strong global demand.
While nickel ore thrived, other sectors experienced a slight downturn. Revenue from power sales decreased by 10.88%, and revenue from services also saw a 10.43% decline, highlighting the company’s reliance on the robust nickel market.
Looking at the broader picture, from January to September, attributable net income soared by 103.44% to P5.19 billion. This sustained performance demonstrates a consistent upward trend throughout the year.
The company’s operating mines moved a substantial 13.89 million wet metric tons of nickel ore in the first nine months, a 2% increase year-over-year. Exports, particularly of saprolite and limonite ore, were a major contributor, with prices jumping 51.66% to an average of $37.52 per WMT.
According to the company’s President and CEO, Martin Antonio G. Zamora, elevated nickel ore prices are a direct result of tight global supply. He anticipates this trend will continue, especially as Indonesia implements stricter regulations on production permits.
Beyond nickel, the company’s renewable energy arm, Emerging Power, Inc., generated 171,279 MWh from its 172 MW capacity. However, despite a 2% increase in generation, earnings before interest, taxes, depreciation, and amortization dipped 16% due to fluctuating wholesale electricity prices.
Exciting developments are also unfolding in the exploration sector. A joint venture with Sumitomo Metal Mining Co., Ltd. has confirmed promising gold-bearing veins and porphyry copper-gold mineralization at the Cordon Project in Isabela, signaling a strategic diversification into valuable new resources.
Zamora expressed optimism about the future, emphasizing the strength of the company’s operational and financial performance. He anticipates a strong finish to the year, delivering sustained value to stakeholders through continued growth and diversification.
The market responded positively to the news, with NAC shares closing at P3.85, a 10.95% increase – a clear reflection of investor confidence in the company’s trajectory.
