“Global Ferronickel is committed to prudent cost management and operational efficiency as it navigates changing market conditions.”
Global Ferronickel Holdings, Inc. (FNI), a leading nickel ore producer in the Philippines, is making headlines in 2024 with significant developments that reflect both its operational resilience and strategic initiatives.
Despite facing challenges in the market, the company has announced a share buyback program, allowing it to purchase up to 2 percent of its outstanding shares over the next three years. This move, approved by the board of directors, aims to enhance shareholder value and demonstrates FNI’s confidence in its long-term growth prospects.
FNI reported a net income of P502.6M for the first nine months of 2024, a decrease of 60.7 percent compared to the same period in 2023. This decline was primarily attributed to falling nickel ore prices, which impacted overall earnings despite the company achieving revenues of P5.73B during this timeframe. The strong sales volume included shipments of 4.269 million wet metric tons (WMT) of nickel ore, with both its Surigao and Palawan mine sites contributing to increased output.
The Surigao site experienced a notable 16.7 percent rise in shipments due to favorable weather conditions and improved logistics, while the Palawan mine delivered 1.105 million WMT, reflecting a 1.4 percent increase driven by optimized operations and enhanced equipment availability. FNI’s President Dante Bravo highlighted that these shipment volumes are the highest recorded since 2021, showcasing the company’s operational efficiency.
FNI is actively exploring partnerships with foreign companies to establish a nickel processing facility in the Philippines. This initiative aligns with the growing demand for nickel in battery production for electric vehicles and positions FNI strategically within an evolving market. The company anticipates that entering new markets, particularly Indonesia, will further bolster its growth prospects.
Fluctuating nickel prices and rising operational costs are challenges but FNI remains optimistic about its future. The company is committed to prudent cost management and operational efficiency as it navigates changing market conditions. With its ongoing initiatives and a focus on sustainable practices, Global Ferronickel Holdings is poised to continue playing a vital role in the Philippines’ mining industry while contributing to the global transition toward cleaner energy solutions.
