Despite lower revenues and earnings last year, Global Ferronickel Holdings Inc. (FNI) is aiming for double-digit revenue growth in 2025 and is allowing ₱711.8 million in capital expenditures to achieve this.
In a disclosure to the Philippine Stock Exchange, FNI said it is committed to maintaining strong financial stability and operating performance. It hopes to hit this year’s target through careful planning and execution.
“The significantly higher production capacity in Palawan—from 1.5 million wet metric tons (WMT) to three million WMT—combined with the increase in productivity in Surigao and improved contribution from port operations in Bataan will be the main drivers of the expected top-line growth,” the firm said.
In response to input cost inflation, the company said it is intensifying its efficiency program through increased production volumes, process and cost optimization, and innovation to firm up profitability.
Strategic priorities include developing existing mines and expanding resources, with ongoing exploration permit applications in north Luzon, Eastern Samar, Camarines, and additional areas in Surigao.
It also covers further investments in warehouse and container terminal in Bataan as well as pursuing value-added nickel processing, primarily ferronickel and battery-grade nickel facilities.
FNI reported a 51.8 percent drop in attributable net income to ₱743.9 million last year, as revenues declined 13.6 percent to ₱7.61 billion, mainly due to lower nickel prices.
Mining revenues were ₱7.59 billion, down 13.4 percent due to lower nickel ore prices, partially offset by strong volumes.
By mine site, Surigao revenues decreased 3.1 percent to ₱4.67 billion (61 percent of total revenues), and Palawan revenues decreased 25.9 percent to ₱2.93 billion (39 percent of total revenues).
By geography, shipments to China comprised 93 percent of revenues, followed by Indonesia at seven percent.
“While market conditions are beyond our control, we are laying a strong foundation for the future by funding growth and unlocking efficiencies,” said FNI President Dante R. Bravo.
He noted that, “In 2024, we sustained double-digit volume growth, reduced our average cash operating cost per volume sold, and reinvested back into the business.
“Looking ahead, we will build on these achievements as we continue to advance on our strategy to capture new revenue streams and deliver profit growth.”
The average realized nickel ore price declined to $24.26 per WMT, down 27.1 percent from $33.28 in 2023. Low-grade ores sold for an average of $19.58 per WMT, down 23.9 percent, while medium-grade ores were priced at $33.06 per WMT, down 29.1 percent.
Various factors affected market prices, including, but not limited to, demand fluctuations in China and Indonesia, stainless steel and low-grade nickel pig iron production, supply chain disruptions from maintenance shutdowns of some steel mills, and supply growth in Indonesia, which outweighed production cuts and mine closures in the rest of the world.
Total volume shipped rose to 5.45 million WMT, up 15.5 percent, with growth in both Surigao and Palawan mine sites. This increase was fueled by investments to expand production and improve productivity.
Sales of low-grade ores grew 18.1 percent and comprised 65 percent of total volume, up from 64 percent in 2023, while sales of medium-grade ores grew 11 percent, accounting for 35 percent of total volume, down from 36 percent a year ago.
Surigao led the company’s volume growth with 3.99 million WMT, an increase of 21.1 percent, following the addition of more equipment, including chartered landing craft tanks (LCTs) and dump trucks, along with favorable weather conditions at the beginning of the year.
In Palawan, the volume shipped was 1.46 million WMT, up 2.6 percent, driven by favorable weather conditions, further development of infrastructure such as mine facilities and causeway, increased equipment availability, and beneficial impact from efficiency initiatives mostly in logistics and human resources.