The Philippine Stock Exchange approved the P1-billion share sale of of Global Ferronickel Holdings Inc.
GNFI, according to the indicative term sheet posted on the PSE website, plans to sell up to 250 million shares for P4 apiece.
Abacus Capital and Investments Corp. is the sole underwriter and issue manager of the deal.
GNFI plans to use the net proceeds from the offering to partially pay the outstanding loan of unit Platinum Group Metals Corp. from the Taiwan Cooperative Bank and as working capital for the operations of the Cagdianao Mine in Surigao del Norte province.
GNFI tentatively set the offering period on May 28 to June 1 and the listing on June 11.
GFNI, through PGMC, is the third largest nickel ore producer in the Philippines by shipment volume and the largest nickel ore producer in the Philippines by value of shipment.
It is also one of the largest single-mine lateritic exporters in the world and one of the biggest global suppliers of nickel ore, accounting for 12.6 percent of the country’s ore production. The company is currently exploring opportunities in mineral processing.
GFNI in November signed an agreement with Vi Holding LLC, a member of an international investment and industrial group of companies from Russia with interests in mineral exploration and processing, real estate, energy and in innovative solutions, on joint business projects in the processing of lateritic ores.
The mining company also plans to further develop its relationship in with China, and explore new opportunities in other countries.
GFNI in 2017 reported a net income of to ₱779.7 million, up 1,980 percent from ₱37.5 million in 2016 on improved selling prices, operational efficiency and favorable foreign exchange impact.
Revenues rose 54 percent to ₱5.8 billion from ₱3.8 billion in 2016 as nickel ore shipments increased 39 percent over the previous year to 5.971 million wet metric tons, while the average realized price rose 5 percent to $19.29 per WMT.
Share price of GFNI on Friday closed at P2.16.
