Key Highlights
- Nickel Industries continues to grow despite market challenges, securing new projects and increasing production capacity.
- Despite setbacks, Q4 EBITDA reached $72.4M.
- NIC launches ENC HPAL project and Sampalaproject has been acquired for $63.2M.
Nickel Industries (ASX: NIC) has operated in Indonesia for 15+ years. Since its 2018 IPO, NIC has grown significantly with Shanghai Decent’s backing. Despite a $20M FX loss and limited nickel ore sales, Q4 EBITDA reached $72.4M. Market sentiment and weak nickel prices caused an 11-month stock low.
Expansion Plans
Nickel Industries is set for an exciting year, with the ENC HPAL project expected to begin production in the second half of 2025. The company is also seeking approval to double its mining output at the Hengjaya mine, a move that could significantly boost EBITDA.
In September 2024, NIC secured the Sampala project for $63.2 million. With an estimated 350-700Mt of nickel resources, this acquisition positions NIC for long-term success. A feasibility study and environmental approval are underway, with production potentially starting by early 2026.
Market Position & Sustainability
Indonesia now leads global nickel production, tightening mining quotas. NIC’s integrated operations ensure stability. The company is also reducing emissions, investing in solar projects and electric mining equipment.
Competitive Edge
With tax incentives and Shanghai Decent’s support, Nickel Industries outperforms struggling Western producers. Its cost-efficient model ensures profitability even at lower prices. Upcoming financial results will be closely watched by investors.