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Wednesday, April 17, 2024

DMCI Mining: H1 nickel shipments hit all-time high

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DMCI Mining said its nickel ore shipments in January to June reached an all-time high, rising by 45 percent to 1.24 million wet metric tons (WMT), from last year’s 853,000 WMT.

Of the total shipments, 718,000 WMT came from Berong Nickel Corp. while Zambales Diversified Metals Corp. contributed 522,000 WMT.

“This is the first time that both our mining assets are operating at full capacity. We expect shipments to remain strong in the second half since we were able to extend Berong’s mine life from June until third quarter this year,” DMCI Mining President Tulsi Das C. Reyes.

Average nickel grade of the shipped nickel dropped to 1.37 percent from 1.39 percent while average selling price per metric ton rallied 57 percent to $44 from $28 owing to China’s surging stainless steel production, strong demand for electric vehicles and the continuing Indonesian nickel ore export ban.

“The uptrend in nickel prices is likely to continue in the coming months because of production-consumption gaps. Major nickel producers are seeing lower output because of Covid-19 lockdowns and various operating issues but industrial manufacturing is still ramping up,” Reyes said.

Nickel is mainly used in stainless steelmaking, but is also a vital ingredient for the lithium-ion batteries used to power electric vehicles (EV). The International Energy Agency estimates that global EVs will grow 14 times to 145 million by 2030.

DMCI Mining revenues in the first half grew 123 percent to P2.7 billion from last year’s P1.2 billion. Including a nonrecurring income of P247 million mainly due to deferred tax liability remeasurement and 2020 income tax adjustment under the Corporate Recovery and Tax Incentives for Enterprises Act, its standalone net income soared 409 percent to P1.2 billion from P241 million.

Its parent company, DMCI Holdings Inc., earlier reported that its net income jumped almost five times to P9.5 billion in the first semester, from the P2 billion it reported last year.

DMCI Mining accounted for P818 million, a 345-percent improvement from P184 million on the back of higher production, average grade and shipment amid a booming nickel market.

Read full article on BusinessMirror

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