NICKEL Asia Corp. reported on Tuesday that its net income decreased to P1.072 billion in the first six months of 2019 as the Philippine peso strengthened against the US dollar.
In a disclosure, the listed mining company said the amount was a 43.7-percent drop from P1.906 billion in the same period last year.
Earnings before interest, tax, depreciation and amortization slid to P2.17 billion in January to June from P2.52 billion a year ago, it added.
Revenues slightly increased to P7.46 billion in the period from P7.38 billion year-on-year.
Nickel Asia attributed the lower earnings “to the impact of a stronger peso relative to the US dollar, which resulted [in] a net foreign-exchange loss of P198.8 million, a turnaround from a gain of P525.4 million recognized last year.”
The firm also reported a consolidated net loss of P81 million in the first half from its equity investments in Coral Bay Nickel Corp. and Taganito HPAL Nickel Corp., erasing the P526-million net profit posted in the same period in 2018, driven by lower nickel and cobalt prices.
Nickel Asia sold an aggregate 9.08 million wet metric tons (WMT) of nickel ore, compared with 8.89 million WMT a year ago.
Of the volume, limonite ore accounted for 48.5 percent or 9.08 million WMT, up 2.14 percent from 8.89 million WMT last year. Ore deliveries made up the rest, decreasing to 4.67 million WMT compared with the year-ago’s 4.89 million WMT.
The average price received for sales of the two ore types in the period was $20.70 per WMT, up 10.3 percent from $18.77 per WMT in 2018.
Total operating cash costs increased by 12 percent to P4.87 billion from P4.36 billion a year earlier.
Nickel Asia shares shed 14 centavos or 5.30 percent to finish at P2.50 apiece on Tuesday.