Global Ferronickel Holdings, Inc. · PSE:FNI
Global Ferronickel — 9M 2017 Earnings Presentation
19 slides from Global Ferronickel's earnings presentation, Oct 25, 2017
Slide 1: 9M2017 Earnings Presentation
9M2017 Earnings Presentation 25 October 2017
Slide 2: Agenda
Agenda 3 Summary 4 Market Review 7 Operations Update 9 Exploration Update 12 Financial Highlights 2
Slide 3: Summary
Summary • Current supply and demand situation creates opportunities for nickel • Supply-side structural reforms in China stimulate upward pressure on ore prices • End-demand environment in China remains robust • Operational efficiencies accelerate turnaround • Revenues were up 72% year-over-year to
Slide 4: Market Review
Market Review The Cagdianao Mine comprises 4,376 hectares located in Sitio Kinalablaban Brgy. Cagdianao Claver, Surigao del Norte, Philippines. Divided into seven contiguous laterite deposits, it is connected within eight kilometers from two separate causeway facilities. It is covered by MPSA 007-92
Slide 5: Supply-side structural reforms in China push ore prices upward
Supply-side structural reforms in China push ore prices upward China Laterite Ore Inventory and Nickel Ore Price Five components of supply-side structural reform 10,000MT Nickel Ore China Laterite Ore Inventory Nickel Ore Price Price (RMB) 1. Cutting excess industrial capacity RMB320, as at 30 Sep 2
Slide 6: End-demand in China remains robust
End-demand in China remains robust China Fixed Assets Investment (Excluding Rural Households)1 China Industrial Production2 YOY Growth YOY Growth 12 (%) 8 (%) 11 6.7% 7 10 9 7.5% 6 8 7 5 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 J
Slide 7: Operations Update
Operations Update Our subsidiary, PGMC-CNEP Shipping Services Corporation, owns five landing craft transports (LCTs) with 1,800 tons capacity for hauling nickel ore from the port to the shipping vessel
Slide 8: Operational efficiencies drive growth in volume
Operational efficiencies drive growth in volume 9M2017 9M2016 Daily Loading (9M2017) vessels 90 63 vessels WMT Daily Volume 9M17 average 9M16 average shipped shipped 60,000 Sunny day average: 30,625 WMT Rainy day average: 18,216 WMT 50,000 4.929 million WMT 3.449 million WMT 40,000 30,000 11 7 27,05
Slide 9: Exploration Update
[Ea ciaste Seaimentary Rocks [J] Limestone HEIN Latorte urramaric HIGDON a LOCAL GEOLOGY (GEOLOGICAL MAP OF CAGDIANAO PROJECT (Modified after QNPH
Slide 10: Continuous exploration increases resource estimate to 54 million DMT
Continuous exploration increases resource estimate to 54 million DMT Mineral Resources Breakdown Mineral Resources (in million dry metric tons) By PMRC classification 23 June 2017 30 June 2016 Measured CAGA 1 (unmined) 7.819 7.819 Inferred 42% 31% CAGA 2 (active) 13.535 13.747 54.160 CAGA 3 (unmined
Slide 11: and mineral reserve estimate to 36 million WMT
and mineral reserve estimate to 36 million WMT Mineral Reserves Breakdown Mineral Reserves (in million wet metric tons) By PMRC classification 23 June 2017 30 June 2016 CAGA 1 (unmined) 3.266 3.471 Probable Proven 31% 69% CAGA 2 (active) 7.718 8.041 36.343 million WMT CAGA 3 (unmined) 9.358 5.157 CA
Slide 12: Financial Highlights
Financial Highlights Approximately 20 trucks patrol the mine yards and disperse water for dust suppression
Slide 13: Flexible product mix captures varying customer needs
Flexible product mix captures varying customer needs Revenue Breakdown Volume Analysis By shipment volume 9M2017 9M2016 Change Low grade Volume (million WMT) 4.929 3.449 42.9% 58% Medium grade Limonite (Low grade) 2.870 2.231 28.6% 42% 4.929 million Saprolite (Med/High) 2.059 1.218 69.0% WMT Mix: Lo
Slide 14: 9M2017: Turnaround continues
9M2017: Turnaround continues (in PHP millions, unless otherwise indicated) Summary Income Statement Summary Balance Sheet 9M2017 9M2016 change Cash 610.7 Volume (million WMT) 4.929 3.449 42.9% Total current assets 4,507.3 Average realized price 18.77 16.70 12.4% PPE 1,885.9 (US$/WMT) Total non-curre
Slide 15: Aggressive share repurchases reinforce confidence in growth prospects
Aggressive share repurchases reinforce confidence in growth prospects Year to date share buyback Cumulative since commencement 245,069,000 shares 251,402,333 shares Total amount ₱636,968,780 ₱654,757,150 as of 30 September 2017 as of 30 September 2017 Total shareholder return1 5% Earnings per share
Slide 16: Appendices
Appendices www.gfni.com.ph investorrelations@gfni.com.ph Sediment control structures: 86 settling ponds, 32 silt traps, 34 dams, 24 sumps, 6 kms. canals
Slide 17: Healthy leading indicators for real estate development
Healthy leading indicators for real estate development Real estate sector in China remains resilient China Fixed Assets Investment in Real Estate China Land Area Purchased for Real Estate YOY Growth YOY Growth (%) (%) 10 20 10.1% 8 10 5.1% 0 6 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
Slide 18: Healthy leading indicators for infrastructure
Healthy leading indicators for infrastructure Heavy investments in power, transport, and water infrastructure continue to be favourable China Fixed Assets Investment in Supply of Power, Gas and Water China Fixed Assets Investment in Water, Environment and Public Facilities YOY Growth YOY Growth 25 (
Slide 19: Healthy leading indicators for automobile
Healthy leading indicators for automobile Demand for new energy vehicles holding up well on rising disposable incomes and government incentives to EV adoption China Industrial Production of Automobiles China Passenger Car Sales YOY Growth YOY Growth (%) (%) 18 35 30 15 13.2% 25 12 20 15 9 10 3.3% 5
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