Nickel Industries (NIC) H2 2024 earnings summary

Executive summary

• Delivered $296.8 million adjusted EBITDA and $186.7 million gross profit despite multi-year lows in nickel prices, margin compression, and operational headwinds, with continued production and resource growth.

• Reported net loss after tax of $189.8 million, mainly due to a $205 million impairment of older RKEF assets and FX losses.

• Major acquisitions increased ownership in key projects, expanding the resource base to 6.4Mt contained nickel.

• Declared a final dividend of AUD 0.015 per share, totaling AUD 0.04 for 2024, with a dividend reinvestment plan (DRP) offered and major shareholders intending to participate.

• Strong ESG and safety achievements, including top Indonesian ESG ratings and record low LTIFR.

Financial highlights

• Adjusted EBITDA of $296.8 million for 2024, with $212.6 million from processing, $100 million from mining, and $19 million from HPAL.

• Sales revenue of $1,744.5 million, down from $1,880.1 million in 2023, reflecting weaker nickel prices.

• Record production of 135,602 tons of nickel, up 4,500 tons year-over-year.

• Net debt at $827.5 million, with compliance to debt covenants and cash balance at $222.5 million.

• Total assets decreased due to impairments; $250 million debt raised and $400 million loan drawn.

Outlook and guidance

• ENC HPAL project commissioning expected in Q3 2025 for cathode and sulfate plants, with MHP in Q4.

• Targeting increase in Hengjaya Mine sales quota from 9 to 19 million wet metric tons per annum.

• First ore sales from Sampala project expected by end of 2025 or early 2026.

• Projected annual EBITDA of $700–800 million in coming years, aiming for $1 billion within 2–3 years if margins hold.

• Ongoing focus on acquiring value-accretive nickel resource projects.