Nickel Industries (NIC) Q1 2025 earnings summary

Executive summary

• Achieved US$97.3 million adjusted EBITDA for the March 2025 quarter, up 4% sequentially, with strong operational performance despite soft market and lower LME nickel prices.

• Maintained industry-leading safety metrics, with a 12-month LTIFR of 0.05 and no lost-time injuries over 4.8 million work hours.

• Recognized for ESG leadership, receiving a third consecutive Green PROPER rating, an international CSR award, and inclusion in Fortune Indonesia's Change the World 2024 list.

• Approved feasibility study to increase Hengjaya Mine's annual quota from 9 million to 19 million wmt; environmental review ongoing.

• Deferred two remaining ENC acquisition payments (US$126.5 million each) by six months to preserve cash and balance sheet strength.

Financial highlights

• Group adjusted EBITDA rose 4% to US$97.3 million; RKEF EBITDA increased 5% to US$44.3 million; HPAL attributable EBITDA up 50% to US$22.0 million; Mining adjusted EBITDA down 15% to US$31.0 million sequentially.

• RKEF EBITDA per ton increased from US$1,309 to US$1,376; HPAL attributable nickel production up 1% to 2,118 tons.

• Cash and equivalents at quarter-end: US$216.4 million.

• Distributed dividends from Angel Nickel, Hengjaya Nickel, and Tsing Creation totaling over US$31 million.

• Angel Nickel received US$36.4 million in VAT refunds from 2022, with about US$110 million more expected within 12 months.

Outlook and guidance

• Commissioning of the nickel cathode plant is targeted for July 2025, ahead of the October schedule; MHP and nickel sulfate commissioning expected in October 2025.

• Sampala Project production targeted for first half of 2026, with updated Mineral Resource Estimate due September 2025.

• Confident in receiving approval for Hengjaya Mine RKAB expansion before October, enabling ramp-up from 9 to 19 million tons.

• Management expects Hengjaya Mine grades to improve in July with new pit opening.