Nickel miner Global Ferronickel Holdings Inc. (GFNI) said Friday its nine-month net income contracted 14.4 percent year-on-year to P1.8 billion as cost grew faster than revenues.
GFNI said in a disclosure to the stock exchange its nine-month sales rose 33.1 percent year-over-year to P6.8 billion on increased volumes from the Palawan mine and its higher-grade nickel ores, which offset in part by lower volumes at the Surigao mine that resulted from wet weather, as well as softer prices for low-grade ores.
Total sold volume also grew 20.7 percent to 3.801 million wet metric tons (WMT), of which 2.711 million WMT were from Surigao and 1.090 million WMT were from Palawan.
The sales mix was 68-percent low-grade ore and 32-percent medium-grade ore compared to 78 percent low grade and 22 percent medium grade a year ago.
The average realized nickel ore price also improved 10.5 percent to $31.93/WMT driven by the more favorable mix and the stronger prices of higher-grade ores.
Cost of sales surged 37.8 percent to P2.8 billion with the opening of Palawan mine which increased contract hires, depreciation and depletion and personnel costs.
Operating costs climbed 7 percent to P1.8 billion primarily related to general and administrative expenses while finance costs totaled P213.9 million, in line with the recognition of interest expenses resulting from the acquisition of an associate company in 2022.
GFNI president Dante R. Bravo said the company is focused on strengthening the business and improving asset diversification.
“Notable progress made on the company’s strategic plans with the purchase of five landing craft tanks to drive meaningful operational and cost efficiencies in transporting nickel ores beginning 2024, and the acquisition of additional land in the Freeport Area of Bataan for our business expansion,” Bravo said.
