Manila, Philippines/ October 25, 2017. Global Ferronickel Holdings, Inc. (FNI) today announced net income of ₱779.9 million for the period January to September 2017 compared to ₱7.0 million in the same period last year. Earnings before interest, tax, depreciation and amortization amounted to ₱1,407.1 million and revenue grew by 72% year-over-year to ₱4,646.3 million.
“We are in a business with high degree of operating leverage. We have successfully addressed both the revenue and cost side which directly translate to our bottom line,” said FNI President Atty. Dante R. Bravo. “Such brisk growth reflects good progress on our previously announced productivity initiatives which drove higher shipped volume. We also benefited from improved selling prices, better product mix, and favorable foreign exchange rate.”
Shipped volume rose 43% in the first nine months to 4.9 million WMT. Average realized price climbed to US$18.77 per WMT, as more medium-grade ore were sold which command higher market prices. Product mix was 58% low-grade ore and 42% medium-grade ore versus the previous years’ mix of 65% low-grade and 35% medium-grade ore.
“We continue to balance capital investments through our mineral exploration program as well as share buybacks. We have repurchased over ₱636 million worth of FNI stock year-to-date and we did this without raising debt levels. We financed the share repurchases from free cash flow because we are focused on long-term shareholder value.”
The company earlier announced the completion of its exploration drilling activities at Cagdianao (CAGA) deposit areas 2 and 3. Measured and indicated mineral resources at CAGA 1 to 5 increased to 54 million DMT with an average grade of 1.1% nickel and 31.4% iron. Mineral reserves increased to 36 million WMT with an average grade of 1.22% nickel and 31.7% iron.
“We are encouraged by current strong trends for fixed asset investments in China particularly real estate development and water, environment and public facilities infrastructure. We are also positive on long-term prospects for new energy vehicles which saw double-digit sales growth year-to-date. With only a few days left before we close the mining season, I’m confident that we’ll finish the year strong and we’ll continue to invest in opportunities we see ahead for 2018 and beyond.”
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