The Company’s four   operating  mines  sold   an  aggregate  7.73   million    wet metric tons (WMT)  of  nickel ore in  the irst  half   of  2014   as  compared   to  5.54   million    WMT in    the same   period last   year,  or  an  increase   of  40%.The    estimated  value  of    shipments  for the six   months    ended June  30,   2014  amounted  to P8.9  billion,   117%  higher compared  to  P4.1   billion    reported   in  the same   period last    year.     

The surge  in  shipment   volumes    during the first  half   of  2014   was largely    the result    of  increased  ore   deliveries   to the   HPAL  plants,   in particular   to the    Taganito  HPAL  facility,  now on  its first  full   year   of  commercial operations.    The said   plant  was still  in  its pre‐operating   stage during    the   same  period last  year.     As a result,   total ore   deliveries to the two HPAL   plants    reached    3.62   million    WMT in 2014   compared   to 1.64   million   WMT in 2013.      The   direct    exports   of ore   likewise   contributed to the   Company’s   higher shipments in the   first half of the   year, increasing   from 3.90    million    WMT to         4.11   million    WMT.

On a per   mine basis,    the   Company’s   Taganito operations   became    the    largest, accounting for   42%   of total shipments during    the   first half of the year. The   mine shipped    a   total of almost 950 thousand   WMT of saprolite    ore and 2.34   million    WMT of limonite   ore, including 1.96 million    WMT of    limonite   to the   new plant.    The   Rio Tuba   mine   accounted for   38%   of total shipments during    this first half.     The   mine   shipped    1.04 million    WMT of saprolite ore   and 1.94 million    WMT of limonite   ore, including 1.66    million    WMT to the adjacent   Coral Bay plant. The Company’s   two   other operating mines,    Hinatuan and   Cagdianao,   commenced shipments only   in April    and May,   respectively, following the end of the wet season.    The Hinatuan  mine  shipped    a  total of 1.09  million   WMT   of limonite  ore   and   51 thousand    WMT of saprolite ore,  while the   Cagdianao mine  shipped   a  total of 110    thousand   WMT of  limonite   ore and 212 thousand   WMT of  saprolite  ore.      

The tight  supply of  nickel ore brought    about  by  the Indonesian   ore export ban has led to  a  surge in prices    to Chinese   customers,   most  notably   during    the   second quarter    of  the year,  significantly higher than   the increase   experienced   in    LME prices.   As  a  result,   effective last  April,    all   ore   sales to our   Japanese  customers  are   now   benchmarked   to  China  prices on  the basis  of  a   negotiated price    per WMT of  ore.   The average    price received   for ore sales to Japanese   and Chinese    customers totaling   4.11   million    WMT of both saprolite and limonite   ore   during this first half amounted   to $41.18 per WMT.   This   compares   to an average    $21.62 per WMT for the same   period last   year on a total of 3.90 million   WMT of ore   sold. The   pricing   of shipments to Japanese   customers for   the   first    half   of last   year and the   first quarter    of this year, which were    primarily linked to the LME,   were   converted to the equivalent US dollar per WMT for    comparison purposes. 

With   respect   to low‐grade   limonite  ore   sold  to both  the   Coral Bay   and Taganito  plants,    which remain    linked    to LME   prices,   we realized  an average    of $7.56 per   pound  of payable   nickel    on 3.62  million   WMT   sold    during    this  first half. This compares    to an average    price of $7.30 per    pound of payable    nickel on 1.64   million    WMT sold   during the same   period last    year.     

“We   are delighted by the strong performance   of our Company    during this   first half,    and in particular the increase   in prices of our various    ore products”,   said   Gerard    H.  Brimo, Rsident and CEO of he company.  “We  are   likewise  very  pleased    by the   performance  of the   new   Taganito  plant,    where we have  22.5%  equity    and   which achieved   approximately 80% capacity   in  the first  half   of    this   year”,    Mr. Brimo  added.    

• [Editor:Juan]