LISTED mining company Nickel Asia Corp. (NAC) has infused an additional investment of P4 million for the exploration activities of its subsidiary Cordillera Exploration Co. Inc. (CExCI) as part of its expenditures in the third quarter of the year.
The company disclosed on Friday that it withdrew such amount from the remaining P52.82- million proceeds of its initial public offering (IPO) four years ago deposited in an escrow account in Security Bank Corp.
The balance of P48.82 million is placed in a 88-day Peso Time Deposit at a rate of 1.3125 percent per annum.
Prior to this, the country’s biggest nickel miner had withdrawn a total of P4.5 million in the second quarter of this year—of which, the first was done on May 7 amounting to P3 million and another P1.5 million on June 23.
With an annual rate of 1.1875 percent, the remaining proceeds worth P52.82 million was held in a 63-day Peso Time Deposit.
Nevertheless, the mining company did not made disbursements for the first three months of this year, hence, the P57.32-million balance as of end-2013 was put in the same term as the latter at a rate of 1 percent yearly.
On November 22, 2010, the NAC debuted in the Philippine Stock Exchange and raised P4.57 billion from the 304.5 million shares sold.
As planned, a part of the IPO proceeds was used to bankroll the exploration activities, including those of CExCI, and the acquisition of new mining properties.
Originally established in 2006, NAC is a global supplier of lateritic nickel ore, and operates as a nickel mining company in the country, with four operating mines: Rio Tuba, Taganito, Cagdianao and Taganaan sites.
Apart from CExCI, it’s subsidiaries include Hinatuan Mining Corp., Cagdianao Mining Corp., Taganito Mining Corp., Rio Tuba Nickel Mining Corp., Samar Nickel Mining Resources, Taganito HPAL Nickel Corp., La Costa Shipping and Lighterage Corp. and Falck Exp Inc.
For the first half of 2014, the NAC’s attributable net income (net of minority interests) rose by 419 percent to P3.30 billion from P636 million in the same period last year due to higher shipment volume and nickel prices.
Core income stood at P2.88 billion as earnings before interest, tax, depreciation and amortization grew to P5.83 billion from P1.83 billion in the first six months of 2013.