SMM8, 20 Feb: FNI global nickel production fell 19 per cent to 1.55 million tons in the first half of 2018 as the company shifted its focus to producing higher quality minerals to get better prices in the global market, (GLOBAL Ferronickel Holdings Inc) said.
Dante R Bravo, president of FNI, said it was the first time the company had "pushed for a premium nickel mine with 1.65 per cent nickel content to take advantage of its relatively high prices to bring better profit margins to the company". "despite the grim situation in the first half of the year, measures to improve operational efficiency and adapt to market changes have enabled us to achieve positive results," Bravo said in a statement.
FNI said it shipped 43 per cent of low-grade nickel ore and 57 per cent of medium-grade nickel ore in the first half of this year. The company exported 63 per cent of low-grade nickel ore and 37 per cent of medium-grade nickel ore in the same period in 2017. The mining company says its current portfolio brings its average revenue per ship to 51 million pence, down 4 per cent from the same period last year.
"despite the decline in revenue, the company has managed to keep its gross margin at 45 per cent, and another positive factor affecting profits is the appreciation of the dollar against the Philippine peso," FNI said.
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