The higher earnings performance for 2011 was the result of improved nickel prices combined with significantly higher sales of nickel ore, which enabled revenues to grow by 52% to P 12.69 billion from the previous year's P 8.34 billion. Total volume of nickel ore sold and delivered from the Company's four operating mines reached 10.39 million wet metric tons (WMT), compared with 8.34 million WMT in 2010. This is the highest volume of sales achieved by the Company in its history.
Of the total volume of ore shipped in 2011, 3.96 million WMT was saprolite ore and 6.43 million WMT limonite ore, of which 2.98 million WMT was delivered to the Coral Bay hydrometallurgical processing plant adjacent to our Rio Tuba mining operations. The corresponding figures for 2010 were 3.22 million WMT, 5.12 million WMT and 2.69 million WMT, respectively.
The realized LME nickel price in 2011, applicable to the company's shipments of medium and high-grade saprolite ore and limonite ore to the Coral Bay plant averaged $10.53 per pound of payable nickel, as against $9.61 per pound of payable nickel in 2010. As of March 27, 2011, the LME spot nickel price stood at $8.18 per pound. With respect to the company's shipments of low-grade saprolite and limonite ore to customers in China, which are priced on a per WMT basis, the weighted average selling price in 2011 amounted to $24.47 per WMT compared to $18.15 per WMT in the previous year.
The improved earnings comes after a one-time casualty loss of P239 million, a result of the insurgency attack at our Taganito mine on October 2011. This, however, was offset by an inventory write-up of P573 million resulting from the change in the volume estimates of the long-term stockpiles at our Rio Tuba mine and a P434 million dividend from Coral Bay Nickel Corporation.
"Despite the challenges we faced last year, notably the earthquake and tsunami which affected the operations of our main Japanese buyer and partner, Pacific Metals Co., Ltd. and the insurgency attack at our Taganito mine, our Company has managed to deliver record shipments, surpassing 10 million WMT for the first time in its history", said Gerard H. Brimo, President and CEO.
Due to the increase in shipment volumes, total operating costs and expenses rose by 24% from P5.06 billion in 2010 to P6.29 billion in 2011. On a per WMT of ore sold, however, total costs and expenses remained almost similar at P587 per WMT in 2011 compared to P590 per WMT in 2010. On a per pound of payable nickel shipped, total costs and expenses decreased from $6.06 per pound in 2010 to $5.14 per pound in 2011. Excise taxes, royalties and fees paid to the government amounted to P557.9 million, while income tax payable on the basis of our earnings in 2011 is P1.62 billion for a total of almost P2.2 billion. The corresponding figures for the prior year are P395.1 million, P1.15 billion and P1.5 billion, respectively.
The Company also disclosed that construction activities of the country's second hydrometallurgical nickel processing plant under its 22.5%-owned associate, Taganito HPAL Nickel, resumed at the end of 2011 following the October 2011 attack. It is expected that commercial operations of the plant, original scheduled in August 2013, will be delayed for several months. Damages incurred are part of the equity in net losses of our associate, which amounted to P196 million in 2011.
Finally, the Company expects to start drilling for gold and copper at its Manmanok property, located in Apayao province, within the first half of the year. In 2010, NAC acquired four gold-copper exploration properties (including Manmanok) from Anglo-American Exploration Philippines. These properties are held under the Company's 71%-owned subsidiary, Cordillera Exploration Co., Inc.
With respect to the outlook for the current year, Mr. Brimo said that "while the LME nickel price today is lower than our average realized price in 2011, the improved sales terms that we have obtained on the basis of a higher percentage of payable nickel on our shipments to Japan, as well as continued strong price levels on some of our ore products to customers in China, will mitigate any near-term weakness in the LME price".
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