May 15, 2024 – Global Ferronickel Holdings, Inc. (PSE: FNI), a leading nickel ore producer in the Philippines, reported first quarter 2024 revenues of ₱589.9 million, net income attributable to shareholders of ₱10.6 million, and earnings per share (EPS) of ₱0.0021.
Mining revenues were ₱586.2 million, down 47.4% from ₱1.1 billion in the prior year due to lower selling prices which more than offset higher sales volumes. The average realized nickel ore price dropped to US$27.42 per WMT, down 55.4% year-over-year from US$61.48 amid continued oversupply, predominantly attributable to Indonesia’s output of nickel pig iron (NPI) to China. Total shipments reached 0.381 million wet metric tons (WMT) of medium-grade ores, up 15.3% over prior year.
“In this uncertain environment, we are focused on boosting productivity and cost efficiency, which is critical to protecting value,” FNI President Dante R. Bravo said. “This includes optimizing our operations both in Surigao and Palawan, reviewing service contract rates, and reexamining planned capital investments. We are also working to improve our resilience to weather challenges, ensuring timely completion of projects, including flood control measures to reduce risks to operations and production arising from La Niña.”
Cost of sales amounted to ₱309.8 million, up 13.2% from ₱273.7 million, a reflection of higher volumes produced and shipped during the quarter. Operating costs, namely excise taxes and royalties, general and administrative, and shipping and distribution declined to ₱279.6 million, down 19.3%.
Net income attributable to FNI shareholders was ₱10.6 million, down 93.1% from ₱153.8 million. EPS was ₱0.0021 from ₱0.0296.
About Global Ferronickel Holdings, Inc.
Global Ferronickel Holdings, Inc. (PSE: FNI) is a holding company whose principal subsidiary is Platinum Group Metals Corporation, the Philippines’ second largest nickel ore producer with mining assets in Cagdianao, Surigao del Norte and Brooke’s Point, Palawan. Through our presence across the Philippines and in China, we are pursuing a multi-pronged strategy to diversify our investment portfolio into value-added nickel processing, cement manufacturing, and port operations and logistics. For more information, visit gfni.com.ph or contact investorrelations@gfni.com.ph.
Forward-Looking Statements
This disclosure contains forward-looking statements that are subject to several risks and uncertainties that could affect the company’s business and results of operations. Although the company believes that the expectations reflected in this disclosure are based on reasonable assumptions, it does not guarantee future performance, actions, or events.