Highlights
• Feasibility Study approved for increase in RKAB from 9m wmt to 19m wmt
• Declaration of a A$1.5c per share Final Dividend and Dividend Reinvestment Plan
• Agreement reached with Shanghai Decent to defer the remaining ENC acquisition payments (of US$126.5m each) by 6 months respectively
The Directors are pleased to present the March 2025 Quarterly Activities Report for Nickel Industries Limited (Nickel Industries or the Company) and its controlled entities (the Group).
For the quarter under review, the Company held an 80% interest in the Hengjaya Nickel (HNI), Ranger Nickel (RNI), Angel Nickel (ANI) and Oracle Nickel (ONI) rotary kiln electric furnace (RKEF) projects, an 80% interest in the Hengjaya Mine and a 51% interest in the Siduarsi Nickel Cobalt Project, a 10% interest in the Huayue Nickel Cobalt HPAL project (HNC) and a 44% interest in the Excelsior Nickel Cobalt HPAL project (ENC), which is under construction.
Commenting on the March quarter’s activities, Managing Director Justin Werner said:
“We are pleased to report another strong quarter delivering US$97.3m in Adjusted EBITDA. This result has been achieved despite the average LME nickel price declining to US$15,530 for the first quarter of 2025, highlighting the robustness and consistency of our operations.
A significant milestone was achieved during the quarter with the approval of the Hengjaya Mine Feasibility Study to move from 9 million wmt per annum to 19 million wmt of nickel ore sales per annum. The environmental study (AMDAL) to support the ramp-up is currently under review by the Indonesian Mines department, and the Company remains confident of receiving this approval in the near term. Increasing the mining quota is a key milestone for the Group as the Hengjaya Mine delivered Adjusted EBITDA of US$100.9m in 2024 for just 9 million wmt.
We continue to remain an ESG nickel leader in Indonesia, with the Hengjaya Mine awarded the coveted Green PROPER rating for a 3rd consecutive year and now striving to achieve Gold rating next year.
In February, we released our full year 2024 results along with the declaration of A$1.5 cents per share final dividend, which took the full year 2024 dividend paid to A$4 cents per share during a time when many of our peers were cutting or declaring nil dividends.
Finally, we are pleased to announce the deferral of our remaining ENC payments, which total US$253m, by 6 months to 1 January 2026 (US$126.5m) and 1 April 2026 (US$126.5m). The decision is reflective of the strong relationship that we maintain with our partner and largest shareholder, Shanghai Decent, and our shared alignment of interests in the success of Nickel Industries. Although management is looking forward to the commissioning of the ENC HPAL in Q3 2025, management made the decision to preserve its cash and balance sheet during this period and defer its final two payments. The strong performance at the HNC project, with a record quarter of US$22m Attributable EBITDA bodes well for the anticipated commissioning of the ENC cathode plant in July and MHP and sulphate plant in October this year.”
To read the full report, please click here
About us:
About Nickel Industries Limited
Nickel Industries Limited (NIC) is an ASX-listed company which owns a portfolio of mining and low-cost downstream nickel processing assets in Indonesia.
The Company has a long history in Indonesia, with controlling interests in the world-class Hengjaya Mine, as well as four rotary kiln electric furnace (RKEF) projects which produce nickel matte for the electric vehicle (EV) supply chain and nickel pig iron (NPI) for the stainless-steel industry.
Having established itself as a globally significant producer of NPI, the Company is now rapidly transitioning its production to focus on the EV battery supply chain – recently, the Company has acquired a 10% interest in the Huayue Nickel Cobalt (HNC) HPAL project, adding mixed hydroxide precipitate (MHP) to its product portfolio.
Nickel Industries is now embarking on its next transformative step, investing in Excelsior Nickel Cobalt (ENC), a next-generation HPAL project capable of producing MHP, nickel sulphate and nickel cathode. ENC is expected to produce approximately 72,000 tonnes of nickel metal per annum, diversifying the Company’s production and reducing the Company’s carbon emissions profile – reflecting the strong commitment to sustainable operations.
To learn more, please visit: www. nickelindustries.com
Contact details:
Nickel Industries Limited (ASX:NIC)
Justin Werner
Managing Director
[email protected]
+62 813 8191 2391
Cameron Peacock
Investor Relations and Business Development
[email protected]
+61 439 908 732
Investor Relations
The Capital Network
Julia Maguire
+61 2 7257 7338
[email protected]