FNI 9-month income up 15%

MANILA, Philippines — Listed Global Ferronickel Holdings Inc. (FNI) saw its net income pick up by 15 percent to P2.13 billion in the nine-month period as it benefitted from favorable exchange rates and better prices in the world market.

In a regulatory filing, FNI said it recorded a net income of P2.13 billion from January to September, 15 percent higher than the P1.86 billion earnings last year.

The performance was largely driven by its mining project in Surigao del Norte operated by Platinum Group Metals Corp.

FNI attributed the better revenues over the past months, particularly on medium-grade nickel ores, to favorable foreign exchange and higher average realized price.

The average realized price of medium-grade nickel ore sold continued to improve at $40.79 per wet metric tons (WMT), up by 17 percent.

Low-grade ore, however, declined by 14 percent to $25.49 per WMT.

The average realized exchange rate of FNI was P54.87 versus P49.22 last year amid the continued depreciation of the peso.

This managed to offset lower shipment volumes amid inclement weather.

Sales of nickel ore for the period reached 3.15 million WMT, down by 25.5 percent from 4.23 million WMT in the same period last year.

Due to disruptions in operations due to weather conditions, FNI was only able to ship 58 vessels as against the 78 shipments the previous year.

These shipments consisted of 78 percent low-grade ore and 22 percent medium-grade ore.

FNI president Dante Bravo maintained that the overall outlook for FNI remains positive for the rest of the year.

“With the opening of our Palawan mineral project, we expect healthier returns. Although weather conditions have not been permissive, we have continued to improve our operations and pursue our expansion plans,” Bravo said.

FNI has interests in ferronickel ore mining and processing, logistics and port operations, and cement and steel production.