GLOBAL Ferronickel Holdings, Inc. (GFNI) posted a 19% increase in its attributable net income in the three-month period ending September, as it benefitted from the increase in nickel ore prices and shipped higher-grade nickel ore.
In a regulatory filing, the listed mining company said its attributable net income went up to P706.554 million in the third quarter, despite a 3% drop in revenues to P3.012 billion.
For the nine-month period, attributable net income increased 36% to P812.540 million from P595.43 million booked in the same period last year.
Revenues went up 5% to P4.786 billion amid lower volume of nickel production by 1.5% to 4.642 million wet metric tons (WMT) or 85 vessels, year-on-year. The increase was brought about by increased shipments of medium-grade ore, which accounted for 58% or 2.689 million WMT of total production. The remaining 42% or 1.953 million WMT accounted for low-grade ore. All shipments were sold solely to its Chinese market.
“We are counting on the price of nickel to continue its upward momentum,” GFNI President Dante R. Bravo said in a statement.
In the first three quarters, the average realized price of nickel ore was up 9.3% to $19.88 per wet metric ton, year-on-year. Average realized exchange rate for the company’s export revenues was P51.88, 2.2% lower than the P53.04 it reported the same period last year.
The company also hopes to take advantage of Indonesia ban on exportation of nickel in the future. Indonesia’s ban is part of its efforts to boost expansion of local smelting industry. — Vincent Mariel P. Galang
