Posted on 15 Aug 2023
Philippine nickel producer Global Ferronickel has reported higher net income and revenue in the first half due to higher nickel sales, Kallanish notes.
The firm says in a statement that its total sold volume was 1.45 million wet metric tonnes (wmt) – 41% higher than in the first half of 2022.
Net income in January-June period this year rose by 49.8% to PHP 625.3m ($11.04m), while revenues increased 41.2% to PHP 3.1 billion.
Strong volumes and higher-grade ores at Palawan mine were the main drivers of growth. This, however, was partially offset by weaker prices and lower-than-average volumes at Surigao mine.
The company reported an average realised nickel ore price of $38.37/wmt, which is 2% lower than $39.21/wmt a year ago, due to the available product mix and lower selling prices in Q2. These were affected by expanded market supply from capacity additions in Indonesia and muted demand in China following a tepid post-pandemic reopening, the company explains.
“There are risk factors which we cannot predict or control but could adversely affect our business. Weather events such as changes in rainfall patterns that we experienced in Surigao is one of them,” says Global Ferronickel president Dante R. Bravo, adding the firm will continue to assess and monitor such factors.
Bravo also says the firm’s ongoing diversification aims to respond to such risk and ultimately improve its portfolio quality and performance.
The Palawan mine benefits from milder weather and a wet season that is not very pronounced thereby allowing year-round operations. The mine also adds greater scale to the firm’s resources and reserves and points to long-term business volume.
“As we step up efforts to further diversify, the combined strength of the Surigao and Palawan mines enable us to better navigate the short-term challenges ahead,” the executive adds.
Source:Kallanish
