Global Ferronickel profit up in 9 months

MANILA, Philippines — Listed Global Ferronickel Holdings Inc. (FNI) saw its net income surge to P780 million in the first nine months from only P7 million in 2016.

FNI, the second largest nickel producer in the country and the largest single lateritic mine exporter in the world, attributed the jump in income to  strong volume growth, improved operational efficiencies and the recovery of nickel prices.

Total export revenue went up 72 percent to P4.6 billion due to higher volumes shipped.

“The growth reflects good progress on our previously announced productivity initiatives which drove higher shipped volume. We also benefited from improved selling prices, better product mix, and  a favorable foreign exchange rate,” FNI president Dante Bravo said.

FNI’s total nickel ore sales increased 43 percent to 4.9 million wet metric tons (WMT) due to equipment productivity and improved business management.

This is also equivalent to 90 shipped vessels for the period compared to the 63 vessels in 2016.

The increase in export revenue was backed by the improvement in nickel ore prices to the average $18.77 per WMT from only $16.70 per WMT a year ago.

FNI is confident it will meet its six million WMT target for this year, banking on  current strong trends for fixed asset investments in China particularly real estate development and water, environment and public facilities infrastructure.

“We are also positive on long-term prospects for new energy vehicles which saw double-digit sales growth year-to-date. With only a few days left before we close the mining season, I’m confident that we’ll finish the year strong and we’ll continue to invest in opportunities we see ahead for 2018 and beyond,” Bravo said.

Based on the recent World Bank’s Commodity Outlook Report, the recovery of nickel prices in both real and nominal terms is seen to continue this year.

For 2017, nickel price is expected to climb to $11,000 per metric ton from the $9,595 average last year, with further upside in 2018 and beyond.

FNI earlier announced an increase in mineral resources following the completion of its drilling and exploration program in its Cagdianao mine.

FNI saw an eight percent increase in its combined measured and indicated mineral resources at the five deposit areas of the Cagdianao mine.

Nickel deposits currently stand at 54.2 million dry metric tons (DMT) from 50.3 million DMT, with 1.1 percent nickel and 31.4 percent iron.