Global Ferronickel Holdings Inc. said Thursday it plans to export 6.5 million wet metric tons of nickel this year from its mines in Surigao del Norte and Palawan provinces to sustain the company’s growth.
This would be 51 percent higher than 4.3 million WMT of nickel it exported in 2022.
FNI said in a disclosure to the stock exchange the Cagdianao mine in Surigao del Norte would export 5 million WMT, while the Palawan mine would ship 1.5 million WMT.
“We had a solid start to 2023, coming primarily from our Palawan mine which benefits from medium-grade nickel ore. We expect a year of increased production, focused operational execution and additional exploration drilling at our mine sites,” FNI president Dante Bravo said.
FNI expects the easing of COVID-19 restrictions in China, the world’s largest nickel consumer, to support the recovery of demand for stainless steel in the medium term.
It said that in the medium to long-term, nickel demand was projected to grow further due to its wide range of applications in renewable energy technologies and critical infrastructure including electric vehicles, solar panels, power grid systems, wind turbines and new technologies such as hydrogen-based energy.
FNI reported a net income P358.8 million in the first quarter, a turnaround a net loss of P198.2 million in the same period last year.
Revenues in the three-month period surged to P1.1 billion from P39.9 million a year ago.
It shipped 330,000 WMT in the quarter, all of which are medium-grade nickel ore. The average realized nickel ore price was $61.48/WMT.
FNI announced in September the first nickel ore shipment from its mine in Palawan, which is a significant step forward in establishing year-round mining operations for the company.
Meanwhile, the board of FNI approved the declaration of cash dividend at P0.10 per share to stockholders of record as of June 1, 2023.
“We entered the year with strong financial and operational momentum. At the same time, our current liquidity allows us to continue to return excess cash to stockholders while also investing in the future growth of the business through additional exploration drilling at our mine sites in Cagdianao and Palawan,” Bravo said.