DMCI Mining Corp. said Thursday its core net income in April to June went up despite lower shipments of nickel and higher fuel costs during the period.
The company said its core net income in the second quarter rose by 8 percent to P542 million, from last year’s P502 million.
Including the impact of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the company said its net income contracted by 28 percent to P542 million from last year’s P749 million.
“We are seeing some topline weakness because of the depletion of the Berong mine but with elevated nickel prices and steady production of our other mining asset, we think we can end the year strong,” DMCI Mining President Tulsi Das C. Reyes said in a statement.
For the second quarter alone, DMCI Mining revenues declined by 20 percent to P1.2 billion, from the P1.5 billion recorded a year ago.
The company said average selling prices of nickel ore surged by 50 percent to $63 from $42 owing to global supply disruptions and strong China demand while the US dollar appreciated by 10 percent against the local currency.
From April to June, shipments plunged by 51 percent to 367,000 wet metric tons (WMT) from 746,000 WMT after production from sole operating asset Zambales Diversified Metals Corp. (ZDMC) contracted by 24 percent to 248,000 WMT from last year’s 328,000 WMT.
For the first semester, the company said its topline was flat at P2.6 billion while core net income rose by 11 percent to P1.1 billion, from P979 million.
“Meanwhile, net income slipped by 11 percent from P1.2 billion to P1.1 billion with the adjustments made in 2021 relative to the CREATE law,” the company said.
In June, the company reported that its core net income in the first quarter rose by 14 percent to P543 million from P477 million, its highest for any given quarter.
The company said its revenues grew faster at P25 percent to P1.4 billion, from P1.1 billion, on account of higher nickel ore shipments and favorable foreign exchange rates.
From January to March, total production plunged by 43 percent to 318,000 WMT from 555,000 WMT on the nil production of Berong Nickel Corp. (BNC) and a 5-percent uptick in the output of ZDMC, to 318,000 WMT from 313,000 WMT.
The average selling price slipped by 5 percent as BNC sold lower-grade nickel amid higher shipments from ZDMC.
DMCI Mining is looking to expand its mining operations by another 3,500 hectares, which have a potential nickel resource of over 200 million WMT. Once fully permitted, these additional operating assets can sustain the company for at least 50 years.