DMCI Mining Corporation doubled its nickel ore shipments in the first quarter of 2019, from a year earlier, but does not see this performance “holding up” for the rest of the year.
The miner cited on Monday several market factors that would have a negative impact on its performance, including weak global prices and the suspension of its Zambales Diversified Metals Corporation.
“We had a good first quarter but we do not see this holding up for the rest of the year due to a number of factors, such as weak market prices, peso appreciation versus the US dollar, and our dwindling nickel reserves in Berong’s active mine sites,” said DMCI president Cesar F. Simbulan Jr.
DMCI Mining shipped 338 thousand wet metric tons (WMT) of nickel ore in the first quarter, more than double, or 118 more than the 156 thousand WMT it shipped during the same period last year.
The average nickel grade from January to March declined from 1.70 percent to 1.59 percent as BNC shifted its shipments to include middle-grade ore of 1.50 percent.
“This, coupled with falling nickel prices, pushed DMCI Mining’s average selling price to drop 25 percent year-on-year from US$38 to US$29,” the company said.
All of the first quarter shipments came from Berong Nickel Corporation (BNC), as Zambales Diversified Metals, remains suspended by the Department of Environment and Natural Resources (DENR).
BNC estimates its nickel reserves in its active mine sites to be around 710,000 tons.
“We hope that with BNC’s track record as a responsible miner, it will be allowed to operate in other areas so we can continue providing livelihood and employment opportunities in our host communities,” said Simbulan.
In December 2018, BNC was the only mining company audited by DENR which passed the nearly two-year review, the company noted. Of the 13 companies audited, three were ordered closed while nine remained suspended, pending the implementation of certain DENR conditions.
BNC directly and indirectly employs 541 people from Barangay Berong and nearby communities. At the height of its operations, the company had a total workforce of 925.
On a standalone basis, DMCI Mining’s first-quarter revenue grew by 63 percent to P501 million from P308 million, while net income jumped 167 percent to P144 million from P54 million due to “cost-containment measures” it employed. —VDS, GMA News