DMCI Mining Corporation shipped 1.9 million wet metric tons (WMT) of nickel ore in 2021, 18 percent higher from 1.6 WMT the prior year and an all-time high for the company.

Record shipments, coupled with surging nickel prices, nearly tripled the company’s net income from P575 million to P1.7 billion, its highest ever.

“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,” explained DMCI Mining president Tulsi Das C. Reyes.

Of the total nickel ore shipments, more than 1 million WMT came from Berong Nickel Corporation (BNC) while Zambales Diversified Metals Corporation (ZDMC) accounted for nearly 900,000 WMT.

Average selling prices jumped 40 percent from US$30 to US$42 on 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.

Meanwhile, average nickel grade of the shipped nickel slightly improved from 1.33% to 1.36%.

DMCI Mining revenues grew 63 percent in 2021 from P2.5 billion to P4 billion. Excluding a nonrecurring income of P247 million mainly due to deferred tax liability remeasurement, its core net income soared 144 percent from P575 million to P1.4 billion.

“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,” said Reyes.

Accounting for roughly 7 percent of global nickel production, Russia is a major exporter of high-grade nickel to Europe and China. London Metal Exchange (LME) Nickel prices hit $26,105 per ton on February 24, the highest level in more than 10 years, as Russia invaded Ukraine.