March 18, 2024 – Global Ferronickel Holdings, Inc. (PSE: FNI), a leading nickel ore producer in the
Philippines, reported revenues of ₱8.8 billion in 2023, operating income of ₱2.8 billion, net income
attributable to shareholders of ₱1.5 billion, and earnings per share (EPS) of ₱0.3022.
The 30.5% year-over-year increase in revenues to ₱8.8 billion was largely driven by the higher volume
from full-year operations and medium-grade ores from the Palawan mine, which started commercial
shipments in September 2022 and became a subsidiary in December 2022. This strong performance
offset the lower volumes at the Surigao mine, weighed down by weather, as well as the weaker prices for
low-grade ores amid expanded output from mines in Indonesia.
FNI President Dante R. Bravo said: “Our revenues highlight our success in operating the Palawan mine
reliably in its first full year of production. This diversification helps improve our cash flows and better
positions us to take advantage of opportunities for short- and long-term growth.”
Total sold volume was 4.717 million wet metric tons (WMT), of which 3.297 million WMT were from
Surigao and 1.420 million WMT were from Palawan. As a result, the sales mix was 64% low-grade ore
and 36% medium-grade ore compared to 76% low-grade and 24% medium-grade in 2022. The average
realized nickel ore price was US$33.28/WMT, rising 5.1% on a favorable mix combined with stronger
prices for medium-grade ores, which were 11.6% higher than last year.
Cost of sales were up 52.5% to ₱3.6 billion mainly due to greater contract hire and personnel costs
following the increase in sales volume from the opening of the Palawan mine. Operating costs remained
under control and were relatively flat at ₱2.4 billion, or 27.3% of revenues, as the increase in general
and administrative expenses were brought down in part by lower shipping and distribution costs in
relation to the softer volumes and reduced freight costs at Surigao. Finance costs rose 73.2% to ₱275.6
million, in line with the recognition of interest expenses resulting from the acquisition of an associate
company in 2022.
Consolidated net income decreased 15.9% to ₱1.8 billion due to the high base from last year that
included a one-off gain of ₱680 million from a settlement received by a subsidiary in 2022. Excluding
this one-time transaction, consolidated net income would have accelerated 22.9%.
After deducting the net income attributable to non-controlling interests, net income to FNI shareholders
was down 19.6% to ₱1.5 billion while EPS declined 18.2% to ₱0.3022. Without the one-off impact in
2022, net income attributable to shareholders grew 3.9% and EPS rose 5.8%.
The company’s balance sheet remains robust with net cash of ₱1.3 billion, based on the sum of
short-term interest-bearing borrowings of ₱347.3 million and lease liabilities of ₱823.3 million, less
cash and cash equivalents of ₱2.4 billion.
FNI also delivered for shareholders through increased returns and capital investment. Dividends
distributed amounted to ₱524.2 million and share buyback totaled ₱295.4 million for the year. Capital
expenditures reached ₱871.4 million, 42.5% over the previous year. Recent investments have been
directed towards expansion in mine facilities, causeway, and land acquisition for future projects.
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.