July 16, 2013

Nickel Asia ore production up, but revenues down

Nickel Asia Corp. Thursday reported a 10.3-percent jump in its ore output volume for the first half of 2013, which reached a total of 5.54 M wet metric tons (WMT). However, the company also said the estimated value of shipments for January-June was pegged  at P4.14 B, representing a 20-percent drop.

Gerard H. Brimo, Nickel Asia president and chief executive, said that the price of nickel ore remains low because of the slow economic growth worldwide as well as the increasing availability of processed nickel amid a slew of facilities that recently went online.

Quoting London Metal Exchange rates, Nickel Asia said the 1.97 M WMT it sold in the first semester and which is now payable yielded an average $7.54 per pound.

This was 12.3%lower than the average $8.60 realized on payable nickel during the first half of 2012.Nickel Asia said the commissioning of the Taganito HPAL plant “is proceeding well and commercial production is expected to start in the fourth quarter.” - WealthSec