Miners’ H2 results expected to reflect strong metal prices
By Adrian H. Halili, Reporter
LISTED mining companies are expected to post improved results during the second half of the year due to an improved outlook for metals prices, analysts said.
“The general outlook for the performance of Philippine mining firms for the second half of the year appears positive,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said via Viber.
He added that prices are being buoyed by increased demand for metals used in technology and infrastructure projects.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that the outlook for Philippine mining firms during the second half “remains cautiously optimistic.”
“Higher metal prices are expected to contribute positively to earnings, driven by global uncertainties and strong demand from the electric vehicle (EV) sector,” Mr. Limlingan said via Viber.
Chamber of Mines of the Philippines (CoMP) Chairman Michael T. Toledo said that copper prices continue to improve due to the global push towards green energy.
“Generally, copper prices will be good over the long haul due mainly to green electrification and the renewable energy transition,” Mr. Toledo added, with the faltering Chinese economy possibly weighing on the market.
Mr. Limlingan said that miners producing materials critical for renewable energy and EVs have an opportunity to benefit from the global shift towards green technology.
The CoMP is expecting the value of nickel to improve as the increased nickel demand from Indonesia could contribute to better prices.
“Any improvement in the nickel pig iron and stainless-steel markets will also support nickel ore prices,” Mr. Toledo added.
He said nickel production by the second half may increase due to the longer operating times for Surigao mines. The Surigao provinces account for more than half of Philippine nickel production.
Nickel miners in Surigao operate for five months during the second half, against three months during the first half.
Mr. Toledo said CoMP’s outlook for gold remains bullish due to the precious metal’s role as a safe haven during times of economic turbulence.
“Some experts expect to see new record highs in the second half despite the global easing of inflation, especially if the Federal Reserve opts for more than one rate cut this year as a result of a sharper-than-expected drop in inflation,” he added.
He said that if the forecasts are borne out, miners could end up offsetting the recent rise in operating costs.
Regina Capital’s Mr. Limlingan added that, costs aside, potential regulatory risks may still pressure margins.
Newly listed OceanaGold Philippines saw its net income decline 30.7% year on year to $14.2 million for the second quarter due to lower ore production.
Philex Mining Corp. recorded an attributable net income of P214.72 million, down from P314.56 million a year ago. Revenues were at P2.24 billion from P2.05 billion a year ago.
Meanwhile, Atlas Consolidated Mining and Development Corp. more than doubled its net income to P1.51 billion during the second quarter.
Nickel ore producer Global Ferronickel Holdings, Inc. reported an attributable net income gain of 0.41% to P196.45 million.
Nickel Asia Corp. posted a 17.7% rise in attributable net income to P914.06 million.
During the second quarter, Apex Mining Co., Inc. posted an attributable net income of P1.03 billion, up 21.5% from a year earlier.