Nickel Asia Corporation (PSE:NIKL) Posts 12 Percent Shipment Volume Increase in Q3

PHILIPPINES – Philippine Stock Exchange (PSE)-listed Nickel Asia Corporation (PSE:NIKL) has disclosed that its four operating mines sold an aggregate 15.96 million wet metric tons of nickel for the nine months ended 30 September, 2015.

In a disclosure to the PSE, Nickel Asia Corporation (PSE:NIKL) said the Q3 figure was 12 percent higher from the 14.26 million wet metric tons in the same period last year.

Nickel Asia Corporation (PSE:NIKL)’s stock traded higher on Monday, ending the session at Php7.21 apiece.

Nickel Asia Corporation was originally formed and operated as a British Virgin Islands company (NAC BVI) in 2006 by combining Hinatuan Mining Corporation (HMC), which owned majority stakes in Taganito Mining Corporation (TMC) and Cagdianao Mining Corporation (CMC), and Rio Tuba Nickel Mining Corporation (RTNMC) under a single entity.

In a disclosure on Tuesday, the company said the direct exports of ore mainly contributed to the Company’s higher shipments, increasing to 10.34 million WMT in the first nine months of 2015 from 8.87 million WMT in the same period last year.

Ore deliveries to the HPAL plants also rose, in particular to the Taganito HPAL facility, which is now operating at full capacity compared to 80% capacity during the same period last year.

Total ore deliveries to the two HPAL plants reached 5.62 million WMT in 2015 as against 5.38 million WMT in 2014.

The estimated realized nickel price on 10.34 million WMT of direct exports of ore in the first nine months of the year averaged $22.65 per WMT, considerably lower than the average of $46.85 per WMT realized during the same period last year.

It will be recalled that there was a surge in ore prices last year due to the expectation of supply tightness resulting from the effects of the Indonesian export ore ban. The tightness, however, did not materialize due to increase in supplies from other sources besides China nickel pig iron and weaker than expected global demand.

“The slowdown in China and lackluster world economic growth has led to high metal inventories, which has in turn taken quite a toll on commodity prices in general”, said Gerard H. Brimo, President and CEO of the Company.

“We however continue to feel that the bottom has been reached for nickel prices and now see a gradual withdrawal of metal from the LME warehouses. It bears mentioning that at current prices, about 60% of producers are operating at a loss, a situation unseen in many years”, Mr. Brimo said. – BusinessNewsAsia.com

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