Weak Surigao mine output, prices pull down FNI income

MANILA, Philippines — Lower production at the Surigao mine and weaker prices slashed the net income of Global Ferronickel Holdings Inc. (FNI) despite an improved top line last year.

In a disclosure on Monday, Global Ferronickel reported a net income of P1.81 billion in 2023, a decrease of 15.9 percent from P2.15 billion previously amid a higher base that included a one-off gain of P680 million from a settlement received by a subsidiary in 2022.

The mining company said net income would have climbed by 22.9 percent had the one-time transaction been excluded.

“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,” Global Ferronickel president Dante Bravo said.

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Net income attributable to shareholders declined by 19.6 percent to P1.54 billion from P1.92 billion year-on-year.

Revenues climbed by 30.5 percent to P8.8 billion from P6.7 billion as sales totaled 4.717 million wet metric tons (WMT).

Broken down, 3.297 million WMT came from the Surigao mine and the remaining 1.420 million WMT from the Palawan mine.

As a result, last year’s sales mix was 64 percent low-grade ore and 36 percent medium-grade ore as opposed to 76 percent low-grade and 24 percent medium-grade in 2022.

The average realized nickel ore price inched up by 5.1 percent to $33.28 per WMT on a favorable mix combined with a stronger price for medium-grade ore, which was 11.6 percent higher than last year.