Nickel Industries (NIC) Q3 2024 earnings summary

Executive summary

• Achieved record operational EBITDA of US$108.4M for the September 2024 quarter, with RKEF nickel metal production of 30,663 tonnes, down 4.1% from June due to maintenance and licensing issues.

• Record ore production and sales at Hengjaya Mine, with 5.75M wmt mined and 2.97M wmt sold, supporting robust EBITDA contribution.

• Completed conditional acquisition of the Sampala Project and a 51% interest in the Siduarsi Project, both with significant JORC resources.

• Progressed ENC HPAL project with installation of first autoclave and appointment of a new HPAL manager.

• Recognised for ESG leadership, winning multiple awards and improving S&P Global ESG score to 37.

Financial highlights

• Group EBITDA from operations reached US$108.4M, with RKEF contributing US$60.0M (up 43.5% from June) and Hengjaya Mine US$37.3M (up 51.6%).

• RKEF production was 30,663 Ni tonnes (down 4.1% quarter-on-quarter), with sales of 31,266 Ni tonnes.

• Realised NPI contract price increased 3.9% to US$11,840/t; cash costs rose 9% to US$10,882/t.

• Underlying EBITDA/t margin for RKEF was US$1,144/t, down from US$1,614/t in June, due to higher ore costs.

• Attributable HPAL EBITDA was US$11.2M; HNC produced 2,125t Ni and 207t Co for NIC.

Outlook and guidance

• Targeting first ore from Sampala Project by end of 2025, aiming for RKEF self-sufficiency.

• ENC HPAL project on track, with commissioning and first product expected in the second half of next year.

• Approvals progressing to increase Hengjaya Mine RKAB from 9Mtpa to 22Mtpa.

• Anticipating stronger NPI pricing and margins in the second half of the year.

• Sampala Project acquisition expected to ensure self-sufficiency in ore requirements and expand in-situ resources.