Global Ferronickel Holdings Inc., a listed mining firm whose trading symbol is FNI, reported first half net income attributable to shareholders down 19 percent year-on-year to P349.5 million despite a sharp increase in revenue.
FNI said consolidated revenue jumped 41 percent to P3.1 billion on the back of strong volume and higher-grade ore at its Palawan mines, b partially outffset by weaker prices and lower-than-average volume at Surigao mine.
Volume sold in the first half total 1.459 million wet metric tons, up 41 percent. This comprised of 52 percent medium-grade and 48 percent low-grade nickel ore. The Palawan mines kept its momentum in the second quarter, while activities at the Surigao mines reflected constraints in the operating environment due to heavy rains preventing stronger production and shipment.
“There are risk factors which we cannot predict or control but could adversely affect our business. Weather events such as changes in rainfall patterns that we experienced in Surigao is one of them,” said Dante R. Bravo, FNI president.
The average realized nickel ore price was USD38.37/WMT, down 2 percent due to expanded market supply from capacity additions in Indonesia and muted demand in China following a tepid post-pandemic reopening.
The average realized exchange rate was P55.34 to the U.S. dollar as against ₱52.60 in the previous year.
“Looking forward, we remain committed to our capital management strategy that is balanced between investing in growth initiatives, providing returns to shareholders, while maintaining a strong balance sheet,” Bravo said.
