No shipments were made through the month of May due to currently reduced demand for lower grade limonite ore.
Market prices for all grades of Philippine nickel laterite ore have fallen precipitously since the Agata operations commenced in October 2014. For ore containing 0.6% to 0.9% nickel and 49% iron content, prices have fallen from an average of US$22 per tonne in the earlier part of 2014 down to US$13 per tonne in November 2014 and have been consistently trading at US$11 per tonne since March 2015. For ore containing over 1.5% nickel and 15% to 20% iron, prices have fallen from well over US$100 per tonne in early 2014 to US$40 per tonne in November 2014 and has been trading consistently at US$31 per tonne since March 2015.
"Significantly depressed Philippine nickel laterite prices and reduced demand for lower nickel grade limonite ore continues to prevent AMVI from being in the position to pay out dividends to Mindoro and TVIRD, the operator, since operations commenced," stated Luis Santos, Interim CEO of Mindoro.
"Given this challenging environment, the Board and management of Mindoro are committed to ensuring that the Company obtains the necessary financial resources for working capital purposes and to meet its various financial obligations."
June Shipment Summary
The one higher nickel grade saprolite ore shipment completed in June by AMVI represented the fourteenth shipment completed since operations commenced in October 2014. The shipment, completed on June 19, 2015, totalled 59,971 wet metric tonnes of saprolite ore containing 1.50% nickel and 21.56% iron. AMVI expects to receive gross revenue of US$1.83 Million for the shipment which was calculated based on a US$30.50 per tonne selling price.
Three other shipments containing low nickel/high iron limonite ore commenced loading during the month but are still in the process of being completed due to weather delays. AMVI expects to complete these shipments in July along with one shipment of saprolite ore.
Revised Gross Revenues for Shipment 13
Based on final assay results and price adjustments, the thirteenth shipment of saprolite ore previously completed by AMVI on April 27, 2015 yielded a final gross revenue figure of US$1.73 million. This is due to the final assay results being 1.67% nickel grade instead of the previously reported 1.73% nickel grade, which translated into a reduction of gross income from the previously reported US$2.9 million to US$1.73 million.