Global Ferronickel Holdings, Inc. Reported Revenues of PHP 8.8 Billion in 2023

The leading Philippine producer of nickel ore, Global Ferronickel Holdings, Inc. (FNI), reported P8.8 billion in sales, P2.8 billion in operating income, P1.5 billion in net income attributable to shareholders, and P0.3022 in earnings per share (EPS) for 2023.

The medium-grade ores from the Palawan mine, which began commercial exports in September 2022 and became a subsidiary in December 2022, and the higher volume from full-year operations were the main drivers of the 30.5% year-over-year rise in revenues to P8.8 billion. This impressive result countered lower volumes from the weather-affected Surigao mine and lower pricing for low-grade ores in the face of increased production from Indonesian mines.

​FNI President Dante R. Bravo said: “Our revenues highlight our success in operating the Palawan mine reliably in its first full year of production. This diversification helps improve our cash flows and better positions us to take advantage of opportunities for short- and long-term growth.”

4.717 million wet metric tons (WMT) of total sales were made up of 1.420 million WMT from Palawan and 3.297 million WMT from Surigao. Consequently, compared to 76% low-grade and 24% medium-grade in 2022, the sales mix was 64% low-grade and 36% medium-grade ore. With greater prices for medium-grade ores, which were 11.6% higher than last year, and a favorable mix, the average realized price of nickel ore was US$33.28/WMT, up 5.1%.
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Due mostly to higher contract hire and labor expenses as a result of the rise in sales volume from the opening of the Palawan mine, the cost of sales increased by 52.5% to P3.6 billion. As a result of lower shipping and distribution costs in relation to the softer volumes and lower cost of freight at Surigao, general and administrative expenses increased, but operating costs were under control and remained relatively stable at P2.4 billion, or 27.3% of revenues. In line with the recognition of interest charges resulting from the acquisition of an associate firm in 2022, finance costs increased by 73.2% to P275.6 million.

Since last year's high base included a P680 million one-time gain from a settlement a subsidiary obtained in 2022, consolidated net income dropped 15.9% to P1.8 billion. The acceleration of consolidated net income would have been 22.9% had this one-time transaction not occurred.

Net income to FNI shareholders decreased 19.6% to P1.5 billion after subtracting the net income due to non-controlling interests, while EPS decreased 18.2% to P0.3022. In 2022, net income attributable to shareholders increased by 3.9%, and EPS increased by 5.8% in the absence of the one-time impact.
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With a net cash of P1.3 billion, which is the result of subtracting P2.4 billion in cash and cash equivalents from the total of P347.3 million in short-term interest-bearing borrowings and P823.3 million in lease obligations, the company's balance sheet is still strong.

Additionally, FNI provided greater returns and capital investments for its stockholders. P524.2 million in dividends were paid out, and P295.4 million was spent on share buybacks during the year. P871.4 million was spent on capital projects, a 42.5% increase from the year before. Land acquisition for upcoming projects, causeway construction, and mine facility expansion have been the main goals of recent expenditures.

​Global Ferronickel Holdings, Inc. (PSE: FNI) 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.