DMCI Mining Corp. booked with record shipments and net income in 2021 but the company is wary of the possible disruptions and market volatility caused by the Russia-Ukraine conflict.
DMCI Mining shipped 1.9 million wet metric tons (WMT) of nickel ore in 2021, up by 18 percent from the previous 1.6 million WMT while net income surged to P1.7 billion for the period compared to 2020’s P575 million attributed to surging nickel prices and improved shipments.
Revenues grew 63 percent to P4 billion from P2.5 billion.
“2021 was a banner year for us. We were able to take advantage of the strong China demand and elevated nickel prices because our two mining assets were operational the whole year,” said Tulsi Das Reyes, DMCI Mining president, in a statement.
The company said of the total nickel ore shipments, more than 1 million WMT came from Berong Nickel Corp. while Zambales Diversified Metals Corp. accounted for nearly 900,000 WMT.
Average selling prices jumped 40 percent from $30 to $42 due to low global inventory amid a stronger-than-expected recovery in stainless steel production, steady build-up in electric vehicle battery demand and the continuing Indonesian nickel ore export ban.
“We expect significant market volatility due to the worsening conflict between Russia and Ukraine. The economic sanctions on Russia will lead to significant supply disruptions,” Reyes added.
DMCI Mining said Russia is a major exporter of high-grade nickel to Europe and China with 7 percent of global nickel production as nickel prices in the London Metal Exchange hitting $26,105 per ton on February 24, the highest level in more than 10 years. – Jed Macapagal
