Global Ferronickel Holdings Inc. said Tuesday it booked a profit in the first quarter for the first time in the listed mining firm’s history, towed by the commercial operation of its new mine in Palawan and earnings from affiliates.
FNI, the company’s trading symbol on the Philippine Stock Exchange, reported net profit of P358.8 million on revenues of P1.1 billion in the first quarter.
“We had a solid start to 2023, coming primarily from our Palawan mine which benefits from medium-grade nickel ore. We expect a year of increased production, focused operational execution, and additional exploration drilling at our mine sites,” said Dante Bravo, FNI president.
“Specifically, we plan to export 6.5 million wet metric tons, including 5 million WMT from Cagdianao and 1.5 million WMT from Palawan,” he added.
A total of 0.330 million WMT was shipped in the quarter, all medium-grade nickel ore. The average realized nickel ore price was $61.48/WMT and the average realized peso exchange rate to the dollar was ₱54.82.
FNI started shipping nickel ore from its Palawan mine last September. With the ramp up in production, the mine reached total output of 1 million WMT 2022.
The company recently 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.
Bravo said the outlook is rosy given forecasts of higher demand and price for nickel, especially with the expected resumption of construction activity in China that will fuel demand for stainless steel. Increasing demand for electric vehicles is also expected to be a boon for nickel producers, he added.
