GLOBAL Ferronickel Holdings, Inc. has acquired a 20% stake in Guangdong Century Tsingshan Nickel Business Co., Ltd. (GCTN), it disclosed on Monday.
“The acquisition is predicted to create dependable and constant synergies between FNI (the corporate’s inventory image) as a nickel ore provider and GCTN as a value-added processor, and assist our ongoing diversification tasks to spice up profitability,” International Ferronickel President Dante R. Bravo mentioned in a disclosure.
The acquisition was made by means of the acquisition of shares in GHGC Holdings, Ltd. (GHL). GHL owns 90% of the GCTN inventory portfolio.
In a separate disclosure, International Ferronickel additional mentioned that it signed a share buy settlement to accumulate 22.22% shareholding in GHL for $75 million.
“This shareholding offers International Ferronickel 20% oblique possession in GCTN and offers expertise and capabilities in value-added processing of nickel ore,” based on the corporate.
GCTN is a Chinese language nickel alloy enterprise that operates smelters with rotary kiln-electric furnace know-how. It produces about 28,000 tons of pure nickel yearly.
The agency additionally has a 33-hectare facility using over 600 staff. Its clients are primarily from Guangdong’s Financial and Technological Growth Zones and overseas.
“This initiative will assist handle dangers, optimize worth to stakeholders, and develop downstream integration of the worth chain,” International Ferronickel mentioned.
“To enrich its growth targets, the corporate continues to pursue investments in high-growth corporations and industries that may improve operational and price efficiencies,” it added.
In September, the agency introduced that its affiliate Ipilan Nickel Corp. accomplished its maiden cargo of nickel ore for export to China.
It exported 54,700 moist metric tons (WMT) of medium-grade nickel ore to GCTN from its mine web site in Brooke’s Level, Palawan.
International Ferronickel additionally famous that Platinum Group Metals Corp. (PGMC) is its subsidiary and Ipilan Nickel Corp. is an affiliate.
“PGMC is a number one nickel ore producer, whereas Ipilan Nickel has simply carried out its maiden cargo of nickel ore to China,” it added.
International Ferronickel mentioned it’s diversifying its investments in direction of high-growth corporations and industries that may present operational synergies and enhance price efficiencies to enhance the expansion potential of the corporate’s nickel mining enterprise.
“The enterprise diversification initiatives will present threat discount and optimum worth to stakeholders. This ends in vertical integration of the worth chain,” it added.
International Ferronickel has pursuits in nickel ore mining, logistics, cement and metal manufacturing, and port operations.
Within the second quarter, the agency’s internet earnings dropped by 16.2% to P615.58 million from P734.56 million in 2021.
On the inventory market on Monday, International Ferronickel shares declined by 4.31% or 10 centavos to shut at P2.22. — Luisa Maria Jacinta C. Jocson