FNI Palawan mine fuels nine-month results

November 9, 2023 – Global Ferronickel Holdings, Inc. (PSE: FNI) reported financial results for the nine months of 2023 with consolidated revenues of ₱6.8 billion, operating income of ₱1.8 billion, net income attributable to shareholders of ₱1.5 billion, and earnings per share of ₱0.3021.


Consolidated revenues rose 33.1% year-over-year to ₱6.8 billion due mainly to increased volumes from the Palawan mine and its higher-grade nickel ores, offset in part by lower volumes at the Surigao mine that resulted from wet weather, as well as softer prices for low-grade ores.

Total sold volume grew 20.7% to 3.801 million wet metric tons (WMT), of which 2.711 million WMT were from Surigao and 1.090 million WMT were from Palawan. As a result, the sales mix was 68% low-grade ore and 32% medium-grade ore compared to 78% low grade and 22% medium grade in the year-ago period. The average realized nickel ore price was US$31.93/WMT, reflecting a 10.5% improvement driven by the more favorable mix and the stronger prices of higher-grade ores, which were 16.9% more than last year.


Cost of sales increased 37.8% to ₱2.8 billion due to the opening of Palawan mine which increased contract hires, depreciation and depletion, and personnel costs, while operating costs were up 7.0% to ₱1.8 billion primarily related to general and administrative expenses. Finance costs totaled ₱213.9 million, in line with the recognition of interest expenses resulting from the acquisition of an associate company in 2022.


Consolidated net income contracted 14.4% to ₱1.8 billion, which includes the share in net income of China-based associates of ₱310.3 million. After deducting the net income attributable to non-controlling interests, net income to FNI shareholders decreased 19.7% to ₱1.5 billion, and earnings per share declined 18.7% to ₱0.3021 as the company continued to return cash to shareholders through share repurchases.

“We are focused on strengthening the business and improving asset diversification,” said FNI President Dante R. Bravo. “Notable progress made on the company’s strategic plans were the purchase of five landing craft tanks (LCTs) to drive meaningful operational and cost efficiencies in transporting nickel ores beginning 2024, and the acquisition of additional land in the Freeport Area of Bataan for our business expansion.”


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 multipronged 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