Nickel Asia Corporation Reported a PHP 3.7 Billion Net Income in 2023, Down 53%

Based on its audited financial and operating results for the twelve-month period ending December 31, 2023, natural resources development firm Nickel Asia Corporation (NAC) reported an attributable net income (net of minority interest) of P3.7 billion, down 53% from P7.9 billion year-over-year.

This is a result of declining nickel ore prices brought on by an increase in nickel production in Indonesia. Due to decreased nickel and cobalt prices, NAC also reported a loss of P1.0 billion from its equity holdings in the HPAL plants in Coral Bay and Taganito, compared to a profit of P0.9 billion the year before.

Similarly, sales of ore brought in P21.4 billion as opposed to P25.5 billion during the same period last year, a 16 percent decrease. A total of 16.5 million wet metric tons (WMT) of nickel ore were sold by active mines, a 3 percent increase in volume over the same period last year.
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In comparison to 8.1 million WMT at $39.39 per WMT the previous year, the company shipped 8.9 million WMT of saprolite and limonite ore at an average price of $30.59 per WMT during the period. Additionally, it transported 7.6 million WMT of limonite ore to the HPAL plants at Coral Bay and Taganito, achieving an average price of $14.66 per WMT. By comparison, during the same period last year, 7.8 million WMT were transported at a cost of $18.72 per WMT.

Consequently, the weighted average sales price of nickel ore over the period dropped to $23.30 per WMT from $29.17 per WMT the previous year, a 20 percent fall. Sales of nickel ore brought in P55.78 per US dollar for the company, up 2% from P54.90 in the previous year.
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Due to lower nickel ore revenues, mining operations' earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 24% to P10.9 billion over the same period the previous year.

“Despite the challenges in the global nickel industry, we remain on track to achieve our ambition of becoming a premiere ESG investment and a Top 25 company in the PSE (Philippine Stock Exchange) by 2025,” said NAC President and CEO Martin Antonio G. Zamora.

“We are enthusiastic about three promising nickel projects, namely Dinapigue, Bulanjao, and Manicani, scheduled to either ramp up or kick off this year. Together, they are poised to significantly bolster our nickel ore sales volumes in the coming years. Furthermore, our diversification into renewable energy is proceeding according to plan. With EPI solar capacity now at 172-MWp and almost 400-MWp in the immediate pipeline, our role as stewards of our country’s natural resources takes on even greater significance,” he added.
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The declaration of a cash dividend of P0.13 per share of common stock, of which P0.05 per share is special, was approved by the Board of Directors of the Company. The dividend is payable to shareholders of record on March 27, 2024, and on April 12, 2024.

Nickel Asia Corp. (PSE: NIKL) is a diversified natural resources development company in the Philippines, comprising five operating and two exploratory mines and interests in the country’s only two high-pressure acid leach (HPAL) plants and in a renewable energy subsidiary.