LISTED miner Global Ferronickel Holdings, Inc. (FNI) posted a pointy increase in first-quarter (Q1) earnings, driven by higher nickel ore prices and increased shipment volumes from its Palawan operations.
In an announcement on Thursday, the corporate said attributable net income surged 169.6% to P478 million from P177.3 million a 12 months earlier, while revenues rose 36.6% to P1.646 billion from P1.205 billion.
“Our Palawan operations delivered a robust begin to the 12 months, supported by continued operational optimization, enhanced mine planning, and disciplined execution across our operations,” FNI President Dante R. Bravo said.
Mining revenues from the corporate’s Palawan operations climbed 36.4% to P1.644 billion in the course of the quarter, driven by higher nickel ore prices and shipment volumes.
Total shipments increased 8.9% to 550,632 wet metric tons (WMT) from 505,459 WMT a 12 months earlier.
FNI said its sales mix in the course of the quarter consisted of 80% medium-grade and 20% low-grade nickel ore, compared with entirely medium-grade shipments in the identical period last 12 months. All shipments in each periods were sold to customers in China.
Average realized nickel ore prices rose 23% to $50.57 per WMT from $41.13 per WMT, which the corporate attributed to tighter nickel ore supply following production quota restrictions in Indonesia and better industry costs linked to tensions within the Middle East.
“Despite global and industry-wide cost pressures, we remained focused on improving productivity, maintaining operational readiness, and advancing initiatives that strengthen efficiency and support our long-term growth objectives,” Mr. Bravo said.
Cost of sales for the January-to-March period increased 2.2% to P544.2 million from P532.3 million a 12 months earlier resulting from higher production and shipment volumes.
Operating expenses, including excise taxes and royalties, general and administrative expenses, and shipping and distribution costs, rose 22.4% to P530.2 million from P433.3 million in the identical period last 12 months.
The rise was mainly attributed to higher excise taxes and shipping expenses linked to larger shipment volumes, partly offset by an input value-added tax impairment provision recognized within the prior 12 months.
FNI said it stays focused on technology adoption, resource expansion, and value management to strengthen operations and reply to changing nickel market conditions.
The corporate added that the beginning of the Surigao mining season within the second quarter is predicted to support operations and contribute to overall performance this 12 months. — Alexandria Grace C. Magno