Global Ferronickel swings back to profitability
MANILA -The start of commercial operations of a new mine in Palawan brought back Global Ferronickel Holdings Inc. to profitability in the first quarter.
Global Ferronickel, in a regulatory filing on Tuesday, reported a net income of P358.8 million in the first three months, a reversal of the net loss of P198.2 million in the same period last year.
“We had a solid start to 2023, coming primarily from our Palawan mine, which benefits from medium-grade nickel ore,” said Dante Bravo, the company’s president.
Revenues for the three-month period soared by 2,728.5 percent to P1.1 billion from only P39.9 million.
Global Ferronickel attributed the return to profitability mostly to its new mine in Palawan, which accounted for over 98 percent of overall revenues.
Through its subsidiary Ipilan Nickel Corp. (INC), Global Ferronickel is operating a mine site located in Brooke’s Point town. INC holds the exclusive right to mine the area, which spans 2,835 hectares, with 260 hectares already partially declared as a mining area.
The Palawan mine is expected to deliver 1 million wet metric tons (WMT) of nickel ore by end-May.
In September 2022, INC shipped 54,700 WMT to Guangdong Century Tsingshan Nickel Industry Co. Ltd. (GCTN), marking its maiden shipment of nickel ore to China.
Global Ferronickel also got a lift from earnings contributed by its associate, GHGC Holdings Ltd. amounting to P52.8 million.
Last year, it acquired for $75 million 22.22 percent of GHGC, which translates to 20 percent ownership in GCTN. INQ
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