FNI sets FOO price, allots capex
Global Ferronickel Holdings, Inc. (FNI), the third largest nickel producer in the country, has set the price of its follow-on offering (FOO) at R2.07 per share while planning R200 million in capital expenditures (capex) this year.
In a disclosure to the Philippine Stock Exchange, FNI said it will raise R517.5 million from its primary offer of 250 million common shares. The offer period will be from July 9, 2018 to July 13, 2018.
“The proceeds will be used to pay the outstanding loan of Platinum Group Metals Corporation, the Company’s operating arm in Cagdianao, Surigao del Norte, to Taiwan Cooperative,” FNI said.
Abacus Capital & Investment Corporation is the Sole Underwriter and Issue Manager.
In an interview before the firm’s annual stockholders’ meeting, FNI President Dante Bravo said the capex will be allotted mainly for mine development and purchase of equipment and will be funded by their cash flow.
Bravo said their operations continue to be profitable although FNI is projecting that earnings will be flat this year. He said current production cost is about $11 per ton of ore versus market price of about $20 a ton.
The Company registered revenues of R5.8 billion in 2017 which is up by 54 percent from a year ago due to higher volume of shipment and recovery in the price of nickel ore.
Net income for 2017 stood at R779.7 million as against R37.5 million in 2016 with the help of productivity measures, costeffectiveness and a favorable exchange rate.
The Company also signed an agreement with Vi Holding LLC, a member of an international investment and industrial group of companies from Russia with interests in mineral exploration and processing, real estate, energy and innovative solutions, to launch joint business projects in the processing of lateritic ores.
FNI announces that its subsidiary Platinum Group Metals Corporation (PGMC) shipped 5.971 million Wet Metric Tons (WMT) of nickel ore for the full year 2017 with an average daily load rate of 27,388 WMT which are greater than by +39% and +32%, respectively, versus 2016.