Global Ferronickel hoping to turn profitability around in 2025
MANILA, Philippines — Listed mining company Global Ferronickel Holdings Inc. is banking on its P711.8 million-investment to prop up its profitability this year, as it reported a significant decrease in net income in 2024.
In a stock exchange disclosure on Wednesday, Global Ferronickel said its capital investment will go to a warehouse and container terminal in Bataan and ferronickel and battery-grade nickel facilities.
The listed firm has ongoing applications for exploration permits in northern Luzon, Eastern Samar, Camarines and additional areas in Surigao.
Its net income attributable to equity holders of the parent company declined by 51 percent to P743.9 million in the previous year, while revenues decreased by 13 percent to P7.6 billion.
READ: Nickel price slump gnaws on Global Ferronickel earnings
Weak pricing
According to Global Ferronickel, lower nickel ore prices affected its revenues, although this was partially offset by strong volumes.
Mining revenues dropped by 13 percent to P7.59 billion, with revenues from mining projects in Surigao and Palawan dropping by 3.1 percent and 25.9 percent, respectively.
“While market conditions are beyond our control, we are laying a strong foundation for the future by funding growth and unlocking efficiencies,” Global Ferronickel president Dante Bravo said.
“In 2024, we sustained double-digit volume growth, reduced our average cash operating cost per volume sold, and reinvested back in the business. Looking ahead, we will build on these achievements as we continue to advance on our strategy to capture new revenue streams and deliver profit growth,” he added.
READ: Global Ferronickel’s H1 profit suffers from weak nickel prices
Total volume shipped climbed by 15 percent to 5.448 million wet metric tons (WMT), fueled by investments to expand production and improve productivity.
However, the realized nickel ore price averaged $24.26 per WMT, down by 27.1 percent. Average prices of low-grade ores and medium-grade ores fell during the reporting period.
