DMCI: Resource exhaustion, nickel ore shipments fell by 20% in the first half of the year
August 20, 2022
On August 18, DMCI Mining Corporation announced its second-quarter earnings report, showing an improvement in core profit as higher nickel ore sales prices and a stronger dollar offset the combined impact of lower shipments and higher fuel costs.
"With the depletion of the Berong mine, but with rising nickel prices and steady production from other mining assets, we think we can end the year strong," said Tulsi Das C. Reyes, president of DMCI Mining.
In the second quarter alone, DMCI Mining's revenue fell 20 percent to P1.2 billion from P1.5 billion a year earlier. The average selling price of nickel ore soared 50% to $63 from $42, while the dollar appreciated 10% against the local currency due to global supply disruptions and strong demand from China.
In the second quarter, DMCI's shipments fell 51% to 367,000 wet tons from 746,000 wet tons after nickel mine production at its sole operating asset, Zambales Diversified Metals Corporation, fell 24% to 248,000 wet tons from 328,000 wet tons.
In the first quarter, total production fell 43% to 318,000 wet tons from 555,000 wet tons due to zero production at Berong Nickel Corp. (BNC), while ZDMC's production rose 5% to 318,000 wet tons from 313,000 wet tons.
It is reported that DMCI Mining is seeking to expand its mining operations by another 3,500 hectares, and its potential nickel resources will exceed 200 million tons. Once fully allowed, these additional operating assets can sustain the company for at least 50 years.