Listed nickel producer Global Ferronickel Holdings Inc. said Wednesday it expects nickel sales to increase in the next few years, driven by favorable prices in the world market, higher shipment and rising demand.
FNI, the second largest nickel producer in the country, said unit Platinum Group Metals Corp. was on track to achieve its target of 6 million wet metric tons this year.
“Weather permitting, we expect to meet our 2017 target of 6 million WMT,” FNI president Dante Bravo said at the sidelines of the company’s annual stockholders meeting at Dusit Thani Manila in Makati City.
Bravo said that based on projections, nickel demand would increase 3 percent this year until 2020 amid urbanization and infrastructure modernization in Asia.
“The sentiment is more positive this year. It is more positive compared to last year because there’s urbanization going on basically in Asia Pacific region which will drive nickel demand in the region. Then there’s technological breakthrough which is the emergence of energy vehicle systems requiring batteries,” Bravo said.
Bravo said the company had already shipped 1.747 million wet metric tons of nickel ore at a year-to-date average realized price of $18.4 per WMT, up from 1.037 million WMT at an average realized price of $13.9 during the same period in 2016.
The company was able to ship 4.309 million wet metric tons of nickel ore while net income amounted to P37.5 million.
“2016 was a year of operational progress and laying the groundwork for a stronger future. During that period, we focused on streamlining operations, pursuing strategic acquisitions and enhancing operational efficiencies,” Bravo said.
Bravo said FNI renewed for another 25 years the mineral production sharing agreement with the government for its 4,376-hectare Cagdianao mine. It also acquired the right to explore an additional 843-hectare land adjacent to the property.
The acquisition presents an opportunity to enhance the company’s nickel ore resources without requiring significant expenditures for mine infrastructure development.