Politics

Lower nickel ore prices drive 53% decline in NAC’s profit

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NICKEL ASIA Corp. (NAC) saw a 53% decrease in its attributable net income to P7.9 billion for 2023, primarily attributed to the decline in nickel ore prices, the company announced on Wednesday.

Revenues from ore sales dropped by 16% to P21.4 billion from P25.5 billion in 2022, the company said in a regulatory filing.

Earnings before interest, taxes, depreciation, and amortization from mining operations went down by 24% on lower nickel ore revenues.

The weighted nickel ore sales price dropped by 20% last year to $23.30 per wet metric ton (WMT) from $29.17 per WMT the previous year. The company realized P55.78 per US dollar from nickel ore sales, up 2%.

“The reason for the lower nickel ore prices started since the second quarter of last year due to the oversupply of class 2 nickel from Indonesia and the weak Chinese stainless-steel demand,” Andre Mikael Lu Dy, NAC’s vice-president for treasury and investor relations and sales, said in a briefing.

Mr. Dy said that the lower ore sales revenue weighed down the positive impact from higher shipments.

The company’s five operating mines sold a combined 16.5 million WMT of nickel ore, up 3%.

About 8.9 million WMT of saprolite and limonite ore had been exported at an average price of $30.59 per WMT, higher compared to the 8.1 million WMT at $39.39 per WMT in 2022.