Nickel Asia: Nickel ore sales fell 10% to 2.39 million wet tons in the first quarter

In a disclosure to the Philippine Stock Exchange on May 6, Nickel Asia Corporation (NAC) said unaudited net income attributable to the first quarter of 2022 surged 80% to 1.05 billion from 584 million in the same period of 2021 peso. Its earnings before interest, taxes, depreciation and amortization (EBITDA) were P2.20 billion, an increase of 30% from P1.69 billion in 2021.

NAC President and CEO Martin Antonio G. Zamora said the company's nickel ore sales fell 10% in the first quarter, from 2.65 million wet tons in the first quarter of 2021 to 2.39 million wet tons in the same period in 2022. In terms of sales revenue, nickel ore sales revenue in the first quarter increased by 17% year-on-year, from 2.85 billion pesos in 2021 to 3.32 billion pesos in 2022, as the weighted average realized price of ore sold increased by 22% from US$22.21 to US$27.03.

Decomposition ore sales, NAC exported 651,000 wet tons of saprolite and limonite ore to customers in Japan and China at a weighted average price of $46.90 per ton in the first quarter, compared to 845,000 in the same period in 2021 Wet ton saprolite and limonite at $45.60 per wet ton.

In addition, NAC shipped 1.74 million wet tons of limonite ore to its local Coral Bay and Taganito HPAL plants in the Philippines, with LME-linked prices achieving an average price of $11.80 per pound of nickel payable. That compares to a nickel price payable of $7.96 per pound for 1.81 million wet tonnes in 2021.

NAC confirmed a P305 million equity gain on its investment in two HPAL plants in the first quarter of 2022, a 166 percent increase from P115 million in 2021, due to higher LME prices. Total operating cash cost will increase 8% year-on-year to P1.67 billion from P1.55 billion in 2021. Total operating cash cost increased from P583 to P701/WMT year on ore sold.

Zamora pointed to continued strong demand for stainless steel and accelerating trends in demand in the electric vehicle market as factors that will benefit the company's metals and mining businesses, while continuing to monitor factors such as the Chinese lockdown that could impact global supply chains and impact the company's business.

Post time: May-10-2022
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