Global Ferronickel Holdings, Inc. Reported P589.9 Million in Revenue in Q12024

Leading Philippine manufacturer of nickel ore, Global Ferronickel Holdings, Inc. (FNI), reported P589.9 million in revenue for the first quarter of 2024, P10.6 million in net income attributable to shareholders, and P0.0021 in earnings per share (EPS).

Lower selling prices more than offset higher sales volumes, resulting in mining revenues of P586.2 million, down 47.4% from P1.1 billion the previous year. The average realized price of nickel ore fell to US$27.42 per WMT, down 55.4% from US$61.48 year-over-year due to ongoing oversupply, mainly because of Indonesia's exports of nickel pig iron (NPI) to China. Medium-grade ore shipments totaled 0.381 million wet metric tons (WMT), an increase of 15.3% from the previous year.

“In this uncertain environment, we are focused on boosting productivity and cost efficiency, which is critical to protecting value,” FNI President Dante R. Bravo said. “This includes optimizing our operations both in Surigao and Palawan, reviewing service contract rates, and reexamining planned capital investments. We are also working to improve our resilience to weather challenges, ensuring timely completion of projects, including flood control measures to reduce risks to operations and production arising from La Niña.”

Due to increased volumes produced and exported during the quarter, the cost of sales increased to P309.8 million from P273.7 million, a 13.2% increase. Operating costs, which include shipping and distribution, general and administrative, excise taxes, and royalties, decreased by 19.3% to P279.6 million.

Relative to FNI shareholders, net income was P10.6 million, a decrease of 93.1% from P153.8 million. from P0.0296 to P0.0021, the EPS.

Global Ferronickel Holdings, Inc. is a holding company whose principal subsidiary is Platinum Group Metals Corporation, the Philippines’ second largest nickel ore producer with mining assets in Cagdianao, Surigao del Norte and Brooke’s Point, Palawan. Through our presence across the Philippines and in China, we are pursuing a multi-pronged strategy to diversify our investment portfolio into value-added nickel processing, cement manufacturing, and port operations and logistics.