Global Ferronickel Holdings, Inc. (FNI) has achieved profitability in the first quarter this year, the company's first in its history.
In a disclosure to the Philippine Stock Exchange, FNI reported P1.1 billion revenues and P358.8 million net income in the first quarter this year.
The firm said earnings per share on attributable net income came in at P0.0296 compared to a loss of P0.0375 in the same period in 2022.
This is mainly due to the commercial operations of its new mine in Palawan and the share in net income of its associate.
“We had a solid start to 2023, coming primarily from our Palawan mine which benefits from medium-grade nickel ore,” said FNI President Dante R. Bravo.
He added that, “We expect a year of increased production, focused operational execution, and additional exploration drilling at our mine sites. Specifically, we plan to export 6.5 million wet metric tons (WMT), including 5 million WMT from Cagdianao and 1.5 million WMT from Palawan.”
A total of 0.330 million WMT was shipped in the quarter, all of which are medium-grade nickel ore. The average realized nickel ore price was $61.48 per wet metric ton (WMT) and the average realized peso over the dollar was 54.82.
In September 2022, FNI announced its first nickel ore shipment from its mine in Palawan, which is a significant step forward in establishing year-round mining operations for the company.
With the successful daily operations and ramp-up in production, the Palawan mine reached its 1 million WMT production last April 29, 2023 and is set to ship its 1 millionth WMT by the end of May 2023.
Additionally, the company acquired a 22.22 percent interest in GHGC Holdings Ltd., which gives FNI a 20 percent ownership in Guangdong Century Tsingshan Nickel Industry Co. Ltd, the owner of a 33-hectare rotary kiln-electric furnace processing facility in China that caters to customers from within and outside Guangdong’s Economic and Technological Development Zones.
Beginning in the fourth quarter of 2022, these recent developments supported FNI’s earnings and will pave the way for a steady income stream throughout the year.
“The company’s financial results along with its recent operational achievements in key strategic areas point to a strong momentum going forward,” said FNI.
It noted that, “On the demand side, the outlook for the nickel industry remains compelling, led by fundamental drivers such as population and income growth, urbanization, and energy transition.”