Nickel Industries (NIC) Q4 2024 earnings summary

Executive summary

• Achieved strong operational consistency and record production in 2024, with RKEF nickel output up 6.9% to 32,784 tonnes and record ore production at Hengjaya Mine.

• Maintained industry-leading safety and sustainability metrics, with LTIFR at 0.11 and multiple ESG awards and recognitions.

• Advanced major growth projects, including ENC HPAL and Sampala, both on track for significant future contributions.

Financial highlights

• Delivered US$72.4M operational EBITDA for the December quarter, with record contributions from HNC HPAL and ONI RKEF.

• Underlying RKEF EBITDA rose 17.5% quarter-over-quarter to US$42.0M, with margin up to US$1,309/t.

• Hengjaya Mine generated US$35.6M EBITDA for the quarter, with annual EBITDA expected to exceed US$110M.

• Cash and cash equivalents increased to US$222.4M at quarter-end.

Outlook and guidance

• ENC HPAL construction is ahead of schedule, targeting first production in H2 2025, with all autoclaves and major equipment on site.

• Anticipates significant EBITDA growth from ENC HPAL commissioning, Hengjaya Mine quota increase, and Sampala project development, aiming for US$1B annualized EBITDA in 2–3 years.

• Hengjaya Mine's quota reset to 9M wmt for 2025, with approval sought for 19M wmt.

• Sampala Project targeting initial 6M tpa in 2026, ramping to 20M tpa, with low anticipated capex of US$50M.