Nickel Industries has reported its strongest quarterly performance in over two years, posting an adjusted EBITDA of US$135.6 million for the quarter ended March 31.
The result was driven by a combination of surging margins, record ore sales, and a 16 per cent jump in the London Metal Exchange (LME) nickel price.
Managing Director Justin Werner said the results for the quarter reflected both operational momentum and improved market conditions.
A standout performer for the period was the Hengjaya Mine, which saw ore sales exceed three million wet metric tonnes.
The mine’s outlook was further bolstered by the Indonesian government’s approval of a significantly increased RKAB sales licence, rising from nine million to 14.3 million tonnes per annum.
This increase comes at a time when many of Nickel Industries’ Indonesian peers have faced volume reductions due to tighter government supply controls. These restrictions have helped underpin a recovery in global nickel prices, flowing directly into the company’s bottom line.
Margins across the company’s Nickel Pig Iron (NPI) operations soared by 155 per cent, climbing to US$2,842 per tonne. Similarly, the High-Pressure Acid Leach (HPAL) operations saw margins rise 20 per cent to nearly US$10,000 per tonne.
The company continues to advance its downstream strategy, increasing its stake in the Excelsior Nickel Cobalt (ENC) HPAL project to 46 per cent.
The project is currently in the pre-commissioning phase, with full commissioning expected in May and a target for full ramp-up by October 2026.
To hedge against input cost volatility, the company has already stockpiled significant quantities of sulphur at prices well below current spot levels.
“The company remains focused on the successful commissioning of the ENC HPAL and refinery facilities during the June quarter and looks forward to delivering another strong quarter from its existing operations,” Werner said.
Development activity also continued across the company’s growth pipeline, with progress at both the Sampala and Siduarsi projects.
Feasibility work advanced at Sampala, alongside ongoing drilling and construction of internal haul roads.
Following the end of the quarter, Nickel Industries further strengthened its balance sheet by executing US$450 million in new syndicated loan facilities.
This refinancing move is expected to reduce borrowing costs and extend debt maturities, providing the company with the financial flexibility to pursue its growth pipeline.
