Global Ferronickel Holdings Inc. (FNI) said it recorded a net income of P2.3 billion in January to September, 23 percent higher than last year’s P1.86 billion.
FNI said its revenues from the sale of medium-grade nickel rose on the back of favorable foreign exchange rate and higher average realized price, while shipment volumes reeled from inclement weather and a lower price for low-grade ore.
The company said the sale of nickel ore for the 9-month period ending September 30 slid to 3.15 million wet metric tons (WMT), lower by 1.078 million WMT or 25.5 percent, compared to the 4.228 million WMT of nickel ore in the same period last year.
The group only completed 58 nickel ore shipments against 78 shipments during the same period last year due to erratic weather conditions registering 161 rainy days to 137 last year.
The resulting sales mix was 78 percent low-grade ore and 22 percent medium-grade ore in 2022 versus the previous period’s blend of 81 percent low-grade ore and 19 percent medium-grade ore.
Shipments consisted of 2.450 million WMT low-grade nickel ore and 0.700 million WMT medium-grade nickel ore compared to 3.424 million WMT low-grade nickel ore and 0.804 WMT medium-grade nickel ore in the same period in 2021.
The average realized nickel ore price for the period is $28.89/WMT lower by $1.89/WMT or 6.1 percent compared to last year’s $30.78/WMT. Low-grade ore is $25.49/WMT lower by $4.30/WMT or 14.4 percent against last year’s $29.79/WMT.
Medium-grade ore was priced at $40.79/WMT higher by $5.80/WMT or 16.6 percent versus last year’s $34.99/WMT. The average realized peso over USD exchange rate for the group’s export revenues is P54.87 compared to P49.22 in the same period last year, higher by P5.65 or 11.5 percent.
“Overall outlook for FNI looks reassuring. With the opening of our Palawan mineral project, we expect healthier returns for our stakeholders. Although weather conditions have not been permissive, we have continued to improve our operations and pursue our expansion plans,” FNI President Dante R. Bravo said in a statement.
FNI recently disclosed its 20-percent stake in China’s Guangdong Century Tsingshan Nickel Industry Co. Ltd (GCTN) to “enhance synergies” between FNI with its nickel ore mines and GCTN as an ore processor and provide a steady value-adding enterprise for the Group.
The company also reported that its subsidiary Platinum Group Metals Corp. has received ISO certifications for its Quality Management System (ISO 9001:2015), Occupational Health and Safety Management System (ISO 45001:2018), and Environmental Management System (ISO 14001:2015) as an Integrated Management System.
The certification applies to all activities in the mining operations of nickeliferous laterite ore and other associated minerals from planning to ore production, hauling, loading and port operations.