Global Ferronickel Holdings, Inc. · PSE:FNI
Global Ferronickel — Investor Day (August 2024)
37 slides from Global Ferronickel's investor day presentation, Aug 14, 2024
Slide 1: Investor presentation August 2024
Investor presentation August 2024 Brooke’s Point, Palawan
Slide 2: Who we are
Who we are We are a leading producer of nickel ore Through our presence across the Philippines and in China, we are pursuing a multipronged strategy to diversify our investment portfolio into value-added nickel processing, port operations and logistics, and cement manufacturing. 5,219 hectares Cagdi
Slide 3: Our investment case
Our investment case Robust industry outlook ▪ Nickel to benefit from global megatrends Strong competitive ▪ Long-life, large-scale, low-cost nickel mines positioning ▪ Compelling acquisition of a China-based processor ▪ Resilient balance sheet Seasoned leadership team ▪ Balanced reinvestment in busi
Slide 4: Cagdianao, Surigao del Norte
Cagdianao, Surigao del Norte
Slide 5: Robust industry outlook: nickel to benefit from global megatrends
ROBUST INDUSTRY OUTLOOK Nickel to benefit from global megatrends Use of critical minerals in renewable energy technology Carbon capture and storage Energy Storage Technology Geothermal Technology Hydro Concentrated solar power Solar photovoltaic Wind Cobalt Zinc Aluminum Indium Silver Chromium Coppe
Slide 6: Energy transitions advance
ROBUST INDUSTRY OUTLOOK Energy transitions advance Market value of key energy transition minerals, net zero emissions scenario Deployment of clean ▪ Market size of key energy transition minerals is energy technologies set to more than double to US$770 billion by US$770 billion continues to advance,
Slide 7: Solid demand and limited supply diversity
ROBUST INDUSTRY OUTLOOK Solid demand and limited supply diversity Global nickel demand in the net zero scenario2 in Mt 7 6.4 5.6 6 Nickel demand: ▪ Nickel demand to see over twofold rise by 2040 5 Strong growth largely 4 3.1 on EV batteries ▪ Driven by clean energy applications, mainly EV 3 batterie
Slide 8: Cagdianao, Surigao del Norte
Cagdianao, Surigao del Norte
Slide 9: Long-life, large-scale, low-cost nickel mines
STRONG COMPETITIVE POSITIONING Long-life, large-scale, low-cost nickel mines 5,229 HECTARES Advantaged position Cost-efficient with low operational risk Cagdianao, Surigao del Norte ▪ Palawan mine (began Sep 2022) enables ▪ near-surface deposits Mining season: April – October year-round production a
Slide 10: Compelling acquisition of a China-based processor
STRONG COMPETITIVE POSITIONING Compelling acquisition of a China-based processor Guangdong Century Tsingshan Nickel (GCTN), China 20% OWNERSHIP in GCTN ▪ Supports ongoing diversification and creates synergies between FNI as a nickel ore supplier and 33-HECTARE RKEF PROCESSING FACILITY GCTN as a valu
Slide 11: Resilient balance sheet
STRONG COMPETITIVE POSITIONING Resilient balance sheet 2,106 0.45 1,868 1,921 0.4 2,000 0.40 1,544 0.35 1,308 0.34 0.3 1,500 0.37 0.30 0.25 in PHP millions Supportive features 0.24 1,000 0.2 ▪ higher cash from operations driven 0.15 by the commercial production of 500 0.1 Palawan mine 0.05 0 0 ▪ exp
Slide 12: Brooke's Point, Palawan
Brooke’s Point, Palawan
Slide 13: Seasoned leadership team focused on value creation
Seasoned leadership team focused on value creation Joseph C. Sy – Chairman Noel B. Lazaro – SVP for Legal and Regulatory Affairs, ▪ Over 20 years of experience in mining and mineral exploration Corporate Information Officer, and Director and development ▪ Director and Corporate Secretary of SPNVI, P
Slide 14: Balanced reinvestment in business and shareholder returns
SEASONED LEADERSHIP TEAM FOCUSED ON VALUE CREATION Balanced reinvestment in business and shareholder returns Capital expenditures Dividends Share buyback Recent investments channeled towards Policy of at least 20% of the prior ₱2.8 billion of capital returned to expansion of mine facilities and equi
Slide 15: Recognized responsible and sustainable practices
SEASONED LEADERSHIP TEAM FOCUSED ON VALUE CREATION Recognized responsible and sustainable practices Recent awards for responsible mining ▪ Best Mining Forest 1st Runner-Up (2023) ▪ Presidential Mineral Industry Environmental Award for surface mining operation (2021, 2022) ▪ Platinum Achievement Awar
Slide 16: In service of delivering long-term stakeholder value
SEASONED LEADERSHIP TEAM FOCUSED ON VALUE CREATION In service of delivering long-term stakeholder value 2021 – 2023 ₱15.9B Payments to suppliers ₱5.2B Taxes paid to government ₱1.6B Employee wages and benefits ₱209M Investments to community ₱422M Final mine rehabilitation and decommissioning fund PS
Slide 17: Cagdianao, Surigao del Norte
Cagdianao, Surigao del Norte
Slide 18: Multipronged strategic vision
Multipronged strategic vision ▪ Less seasonality impact ▪ Reduced reliance on single mining location ▪ Expanded resource base and proven reserves ▪ Development of complementary new products ▪ Greater scale in terms of production and profitability ▪ Higher efficiency through optimization of mining in
Slide 19: First-half results
First-half results Brooke’s Point, Palawan
Slide 20: Performance highlights
Performance highlights 1H 2024 1H 2023 % change ▪ Mining revenues were relatively flat over the prior year at ₱3.071 billion, despite record sales volumes as prices remained Mining revenues PHP ‘000 3,071,059 3,098,152 -0.9% subdued due to supply surplus in the nickel ore and NPI markets. Sales volu
Slide 21: Summary of costs
Summary of costs ▪ Cost of sales came in at ₱1.735 billion, up 34.9%, on larger production and shipping volumes, reflecting a rise in contractor rates in Surigao due to the change in sales mix and sources of nickel ore deposits, where the location affects the hauling distance and ultimately the mini
Slide 22: Summary consolidated statements of comprehensive income
Summary consolidated statements of comprehensive income PHP ‘000, except per share amounts and percentages 1H 2024 1H 2023 Change % change Revenues 3,078,768 3,115,901 (37,133) -1.2% Cost and expenses (2,803,725) (2,206,352) 597,373 27.1% Finance costs (110,625) (142,715) (32,090) -22.5% Share in ne
Slide 23: Summary consolidated statements of financial position
Summary consolidated statements of financial position PHP ‘000 June 30, 2024 December 31, 2023 change % change Assets Current assets 3,278,081 3,938,933 (660,852) -16.8% Noncurrent assets 13,971,597 13,475,808 495,789 3.7% Total assets 17,249,678 17,414,741 (165,063) -0.9% Liabilities and Equity Cur
Slide 24: Why FNI?
Why FNI? Robust industry outlook ▪ Nickel to benefit from global megatrends Strong competitive ▪ Long-life, large-scale, low-cost nickel mines positioning ▪ Compelling acquisition of a China-based processor ▪ Resilient balance sheet Seasoned leadership team ▪ Balanced reinvestment in business and fo
Slide 25: Appendix
Appendix Cagdianao, Surigao del Norte
Slide 26: Corporate structure
(FNI, Listed Holding Company) 22.22% 88.01% 99.98% 100% 100% GHGC Holdings Ltd. FNI Steel Landholdings Corporation FNI Steel Corporation Mariveles Harbor Corporation Platinum Group Metals Corporation (PGMC, (GHGC, Hongkong based (FSLC, Holder of Real Properties of (FSC, Steel Processing Company in (
Slide 27: Business groups and subsidiaries
(FNI, Listed Holding Company) Manufacturing/ Mining Business Group Services Group Processing Business Group Expansion of nickel resource and Entry into value-added nickel Expansion of port operations and exploration of limestone processing logistics Operating Mines Investment in Nickel Processing Pl
Slide 28: Growth of Philippine nickel industry
Growth of Philippine nickel industry 84% 49% 39% 31% 22% 41% 16% 10% 9% 9% 7% -12% -43% Estimated production value -39% (in PHP millions) Company (# of operating mines) 2021 2022 -55% -67% Nickel Asia (5) 18,722 18,606 FNI (2) 7,136 7,656 2015 2016 2017 2018 2019 2020 2021 2022 CTP (2) 7,083 7,228 C
Slide 29: Active mining areas at Cagdianao, Surigao del Norte
Active mining areas at Cagdianao, Surigao del Norte CAGA 4 CAGA 6 N CAGA 2 CAGA 5 CAGA 3 CAGA 6 S CAGA 1 CAGA 7 ACTIVE MINE PITS (CAGA 1, 2, 3, 4) - 700.92 hectares PSE: FNI 29
Slide 30: Historical production
Historical production 6,303 Total volume 68,856 WMT 5,929 5,971 5,890 Low grade 41,663 (61%) 5,709 5,625 4% 2% Medium and high grade 27,193 (39%) 5,352 5% 4,501 4,887 8% 0% 23% 7% 5,210k WMT = yearly average (2011-2022) 4,354 2% 4,309 39% 55% 23% 17% 1% 32% 3,690 15% 53% 3,407 20% 2% 23% 43% 11% Gra
Slide 31: Historical average realized price
Historical average realized price 130.2 Average USD/WMT Low grade 18.42 Medium grade 29.12 High grade 41.22 USD/WMT 59.9 44.5 44.7 46.6 41.8 36.4 37.5 LG 34.0 34.5 29.1 29.4 28.6 29.5 27.7 24.6 22.9 24.7 MG 18.0 21.8 23.7 22.0 19.3 18.8 30.7 30.1 28.4 15.7 25.7 23.8 HG 19.5 21.3 17.8 15.3 13.6 13.1
Slide 32: Resources and reserves at Cagdianao, Surigao del Norte
Resources and reserves at Cagdianao, Surigao del Norte Statement of Mineral Resources for Total Nickel as of 15 October 2023 PMRC % Nickel, % Iron, Dry bulk Deposit Material Classification DMT WMT Ni Fe Density Measured 38,199,000 58,763,000 1.2 29.0 1.2 Combined Combined (High, Medium, Indicated 30
Slide 33: Active mining area at Brooke's Point, Palawan
Active mining area at Brooke’s Point, Palawan PSE: FNI 33
Slide 34: Resources and reserves at Brooke's Point, Palawan
Resources and reserves at Brooke’s Point, Palawan Statement of Mineral Resources for Total Nickel as of 31 December 2022 PMRC % Nickel, % Iron, Dry Bulk Deposit Material Classification DMT WMT Ni Fe Density Measured 36,009,000 55,400,000 1.3 23.9 1.2 Combined M1 (High, Medium, Low Indicated 6,753,00
Slide 35: Mining process
Mining process Clearing/Grubbing and Topsoil Bench Forming Removal Temporary Revegetation Progressive Rehabilitation Program Ore Mining Ore Barge/LCT Loading Ore Blending and Stockpiling Vessel Loading Dust Control Siltation Mitigating Measures Drainage Management PSE: FNI 35
Slide 36: Disclaimer
Disclaimer This presentation is for information purposes only and is not intended to, and does not constitute or form part of, any offer, recommendation or the solicitation of an offer to buy or sell any securities in Global Ferronickel Holdings, Inc. (“FNI”, “Company”), nor shall this presentation
Slide 37: Contact us
PSE: FNI Contact us investorrelations@gfni.com.ph Penthouse, Platinum Tower, Asean Avenue corner Fuentes St., Aseana, Parañaque City
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