DMCI Mining reports double-digit profit slump on Berong mine depletion
November 23, 2022 | 2:00 p.m.
MANILA, Philippines — The profits of DMCI Mining Corp. suffered in the third quarter due to a motley crew of effects, including the depletion of its Berong mine.
In a statement sent to the Philippine Stock Exchange on Wednesday, the Consunji-led mining company said its net profit fell 56% year-on-year to 80 million pesos in the third quarter.
Profits also fell 17% year-on-year to 1.17 billion pesos in the first nine months.
“We expected a sharp drop in earnings due to the depletion of our Berong mine late last year. Fortunately, the bull market for nickel allowed us to ship even low-grade inventory of Berong,” said DMCI Mining President Tulsi Das C. Reyes.
The mining company noted that higher nickel prices and a weak peso are offsetting the company’s weak earnings.
Financial results showed the company’s nickel ore shipments fell 25% year-on-year to 1.09 million wet metric tons (WMT) in the first nine months. DMCI Mining estimated shipments fell 50% year on year in the third quarter.
In late September, the Consunji-led mining company reported that total inventory had fallen 76% to 109,000 WMT. This was mainly due to the depletion of stocks of Zambales.
DMCI Mining noted that the average selling price of its minerals rose 16% year-on-year, ranging from $43 to $50 in the first nine months.
The depreciation of the peso let selling prices increase by 10% year-on-year in the first three quarters.