Consunji-led DMCI Mining Corp. reported a 17 percent drop in its net income in the first nine months to P1.17 billion as nickel ore shipments and average nickel grade sold declined.
“We expected a severe profit decline because of the depletion of our Berong mine late last year. Fortunately, the bullish nickel market allowed us to ship even the low-grade inventory of Berong,” said Tulsi Das C. Reyes, president of DMCI Mining.
“Strong nickel prices and local currency weakness also moderated the impact of lower shipments on our bottomline,” he added.
For the third quarter, net income plunged by 56 percent to P80 million due to the combined effect of lower shipment, flattish nickel grade sold,higher selling prices and favorable average foreign exchange rates.
Total shipments declined at a slower pace from January to September as the Berong mine did better than expected in the first half. Consequently, nickel ore shipments only fell by 25 percent to 1.09 million wet metric tons.