MANILA, Philippines - Miner Marcventures Holdings Inc. is estimated to more than double its nickel shipments this year, and earn at least triple the P300 million net income it expects for 2011.

In a study, First Metro Investments Corp. (FMIC) said the firm can make 18 shipments or one million wet metric tons (WMT) of combined low-grade (1% per ton of ore with iron content of 48%) and high grade nickel ore (1.8% per ton of ore) this year.

“We estimate last year, Marc made over 550k WMT shipment of predominantly low-grade nickel ore, the first to be extracted based on Marc’s mining strategy over an open pit mine of 15 hectares (has),” FMIC said.

The active mine, located in Cantilan, Surigao del Sur, Mindanao, is part of the 120-has. explored area with resource and reserve estimates of 22.6m WMT and 11.6m WMT, respectively, and with nickel ore average grade of 1.5%, compliant with the Philippine Mineral Reporting Code standards.

There are ongoing drillings outside of the 120 has. as the company has obtained an exploration permit and the assay results will shortly lead to a certification by a competent person with the results out by 2Q2012 from the Mines and Geosciences Bureau.

FMIC said Marcventure’s 2012 earnings growth will be driven by higher daily tonnage, likely at 6.6k WMT over 150 days of operations in 2012, and a revival in LME nickel prices to the current $21,500 per ton or an equivalent selling price of $56 per ton for Marcventures under its 3-year, 3 million ton nickel ore forward sales contract with Dun Feng International. Dun Feng is one of the largest buyers of nickel ore in China.

"Based on this, it is possible the company could make net profits of 3x the 2011 expected net profits of P300 million," FMIC said.