Global Ferronickel Holdings, Inc. · PSE:FNI
Global Ferronickel — Investor Presentation (July 2016)
18 slides from Global Ferronickel's investor presentation, July 2016
Slide 1: Global Ferronickel Holdings, Inc. Investor Relations Presentation
Global Ferronickel Holdings, Inc. Investor Relations Presentation July 2016
Slide 2: Section I. Nickel
Section I. Nickel
Slide 3: Nickel
Nickel Uses of Nickel Industry Consumption (%) Nickel is one of the most commonly used metals and can be 3% found in over 300,000 products for consumer, industrial, military, transport, aerospace, marine and architectural applications 8% The biggest use of nickel is to produce alloys, particular
Slide 4: Nickel Price
Nickel Price Nickel is at a historical low price and LME nickel price has rebounded more than 30% from its 10-year low of US$7,595 per tonne in February 2016. This rebound is supported by the prospect of demand exceeding supply, as well as fear of lower output from the Philippines 60 Price/Tonne (US
Slide 5: Nickel Price Outlook
Nickel Price Outlook World Bank and IMF have forecasted that LME nickel prices would exceed an average US$10,000 per tonne in 2016 Various industry experts believe that the increase in nickel price is driven by The growth in end use demand from China, which is the largest consumer of nickel gl
Slide 6: China as a Key Driver of Demand
China as a Key Driver of Demand China has high demand going into the future and has been in structural deficit for refined nickel since 2012 China is the largest consumer of nickel in the world today, consuming 50% of the total world production. It currently consumes more nickel than it can produc
Slide 7: Philippine Nickel
Philippine Nickel Demand for Philippine nickel in particular is poised to increase in the near term In 2015, over 97% of nickel ore imported by China was from the Philippines, driven by: The Philippines’ strategic close proximity to China, which keeps transport costs low The country’s mining l
Slide 8: Section II. Global Ferronickel Holdings, Inc. ("FNI")
Section II. Global Ferronickel Holdings, Inc. (“FNI”)
Slide 9: Company Overview
Company Overview Company Overview History and Overview Market Data Global Ferronickel Holdings. Inc. (“FNI”) is the second largest Share price (PHP) 0.88 nickel ore producer in the Philippines 52 week high (PHP) 1.65 The Company has mining rights to the Cagdianao mine located in 52 week low (PHP
Slide 10: Key Milestones
Key Milestones FNI executed a deed of exchange FNI for a share swap executed the PGMC commenced with shareholders acquisition of FNI received mining operations of PGMC. FNI 100% a 25 year at Cagdianao mine issued shares in interest of extension for (4,376 hectares) exchange for SPNVI its operating a
Slide 11: Key Management Profile
Key Management Profile Joseph C. Sy - Chairman and Director Atty. Noel B. Lazaro - Corporate Secretary, Compliance Officer and Corporate Information Officer The chairman of FNI and PGMC since 6 Aug 2015 Joined PGMC on 1 August 2014 and became a director of PGMC Director and President of Ipilan
Slide 12: Investment Highlights
Investment Highlights Strong Financial Position FNI generated a net income of PHP1.1 bn (US$24 mn) in FY2015, displaying its defensive capabilities despite a weak nickel price environment Cost efficient operations led to a high profit margin of 17% which was the highest among listed nickel miner
Slide 13: Investment Highlights (Cont'd)
Investment Highlights (Cont’d) Continued Strong Growth With the successful acquisition of Southeast Palawan Nickel Ventures, Inc. (“SPNVI”), whose Ipilan mine comprises predominantly medium to high grade nickel ore and has a mining season which complements the existing Cagdianao mine, FNI’s permit
Slide 14: Investment Highlights (Cont'd)
Investment Highlights (Cont’d) Strong Commitment to Delivering Shareholder Value Share Buy-back FNI approved a share buy-back program for up to 10% of its outstanding shares over a period of up to 3 years as a capital management strategy Based on current capital structure, FNI may acquire up t
Slide 15: Financial Metrics
Financial Metrics FNI has the highest net profit margin among its peer group Revenue Net Profits Revenue (US$m) Net Profit (US$m) 2014 2015 2014 2015 600 556.4 250.0 192.7 500 200.0 400 339.2 150.0 104.5 300 100.0 196.3 200 143.6 44.7 50.0 24.4 19 100 56.9 51.2 0.0 0 -2.6 -50.0 FNI MARC NIKL FNI MAR
Slide 16: Return Metrics
Return Metrics FNI has delivered the highest returns both on equity and asset bases among its peer group EBIT/Assets EBIT/Equity EBIT/Assets EBIT/Equity 2014 2015 2014 2015 70% 63.2% 100.0% 89.1% 60% 80.0% 50% 40.6% 40% 60.0% 46.6% 30% 21.9% 13.8% 40.0% 26.7% 20% 11.8% 19.8% 17.2% 10% n.m. 20.0% 0%
Slide 17: Shareholding Summary
Shareholding Summary Shareholders Listed and Unlisted Shares % of Total % of Total Shareholding Name Shareholding Outstanding Outstanding Shares Shares Listed shares 7,003,920,939 40.0 Joseph Sy through: Unlisted shares 10,463,086,113 60.0 Sohoton Synergy, Inc. Total 17,467,007,052 100.0 5,669,536
Slide 18: Disclaimer
Disclaimer The information in this presentation has been prepared by Global Ferronickel Holdings, Inc. (“FNI”) and its subsidiaries (together, the “Group”). None of the Group or any of its directors, officers, employees or shareholders shall be in any way liable for the contents hereof. By attending
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