Global Ferronickel Holdings Inc. reported net income of P4.8 billion for the six months ending December last year, higher than a year earlier as it benefited from firmer ore prices due to Indonesia’s export ban.
“The main factor was mainly the Indonesian export ban so the price went up for medium and high-grade ores,” Dante R. Bravo, Global Ferronickel executive vice president and corporate secretary, told The Manila Times in a text message.
“In 2013, we only shipped low-grade ores while in 2014, we sold low, medium and high-grade ores, so we were able to benefit from the good pricing last 2014,” he added.
For the six months ending December 2014, the company posted P9.05 billion in revenues and P4.16 billion in operating expenses, without giving directly comparable figures.
The company recently changed its fiscal year ending in June to the calendar year ending in December following last year’s takeover of Southeast Asia Cement Holdings Inc. (Seacem) by Platinum Group Metals Corp. for the latter’s backdoor listing. PGMC later changed its corporate name to Global Ferronickel.
Following its backdoor listing, the company plans to do a P31-billion follow-on offering sometime this year, and expects to use the proceeds to expand its financial performance and volume production from this year and beyond.
Bravo earlier said Global Ferronickel expects to grow its net income this year in the “single to double-digits” level from a year ago. Net income for the full year 2014 is expected to reach $130 million (P5.7 billion), he earlier said.
The company also sees ore production at its Surigao mine growing by 11 percent in 2015 to 7 million metric tons (MT) from 6.3 million MT in 2014.
Global Ferronickel exports its ores mostly to China (90 percent) and Australia (10 percent). It has a total of 4,376 hectares of mine reserves at its CASA Surigao site, of which only 217 hectares have been exploited to date.