Benefitting from higher nickel ore prices, Global Ferronickel Holdings, Inc. (FNI) saw its first-half net income surge by 200.4 percent to P622.1 million from P207.1 million a year earlier. 

In a stock exchange report on Thursday, the listed nickel miner said revenues reached P3.288 billion, driven by higher nickel ore prices despite a 23.2 percent drop in sales volume to 1.620 million wet metric tons (WMT).

Mining revenues rose 6.9 percent year-on-year to P3.281 billion, supported by constrained ore supply and better pricing.

“Our first-half performance demonstrates our resilience and ability to deliver value despite external factors. While unfavorable weather and regulatory constraints affected shipment volumes, we capitalized on market pricing. Strategic mine planning, technology integration, and disciplined cost management enabled us to sustain revenue growth and protect margins,” FNI President Dante R. Bravo said.

The average realized nickel ore price rose to $35.61 per WMT from $25.35. Low-grade ore fetched $31.41 per WMT, up 74.7 percent, while medium-grade ore sold at $42.50, up 39.2 percent. 

The sales mix shifted to 62 percent low-grade and 38 percent medium-grade, mainly due to extended rainfall that limited medium-grade output.

In Palawan, revenues rose 8.5 percent to P2.096 billion despite a 17.1 percent drop in shipments to 0.892 million WMT. The decline was due to permitting delays and bad weather.

In Surigao, revenues increased 4 percent to P1.186 billion, though volume fell 29.5 percent to 0.728 million WMT. FNI cited early stockpiling and improved weather from mid-May for the recovery in shipments.

Cost of sales declined 16.4 percent to P1.451 billion, helped by lower volumes and a shift to low-grade ore. Operating expenses were flat at P1.079 billion.

“With the first half of the year behind us, our attention continues to be on maintaining operational improvements, stepping up shipments, and setting FNI up for long-term, sustainable growth,” Bravo added.