Nickel Industries Limited (ASX: NIC) reported another strong quarter for the three months ended 30 June 2025, driven by record sales from its Hengjaya Mine and steady progress in major development projects in Indonesia.
The company generated US$86 million in adjusted EBITDA, reflecting robust operational performance across its portfolio.
The Hengjaya Mine stood out with a record 3,021,678 tonnes in quarterly ore sales, delivering mine-level EBITDA of US$41.4 million.
Overall, Nickel Industries’ adjusted EBITDA combined contributions of US$33.7 million from its Rotary Kiln Electric Furnace (RKEF) operations, US$10.8 million from its share of High-Pressure Acid Leach (HPAL) operations, and US$41.4 million from Hengjaya Mine activities.
Nickel Industries Managing Director Justin Werner highlighted the quarter’s momentum, stating: “We are pleased to report another strong quarter, with the Hengjaya Mine achieving record sales and generating mine EBITDA of US$41.4 million.”
He added: “We continue to make solid progress toward increasing our sales quota from 9 million wmt per annum to 19 million wmt per annum.
“With our feasibility study approved in March, we advanced our environmental study through the June quarter and anticipate receiving approval in the coming weeks.
“This will pave the way for the revised sales quota, positioning us well for a strong second half of 2025.”
Drilling activities at the Sampala Project advanced significantly, with 31,497 metres drilled this quarter and a total of 153,708 metres completed to date.
The initial JORC resource covers only 900 hectares of the 4,700-hectare project area, signalling substantial potential for resource growth.
Feasibility studies for a 6 million wmt per annum operation at the ETL IUP within Sampala are underway, while construction of an eight-kilometre section of the 22-kilometre haul road linking Sampala to the Indonesia Morowali Industrial Park (IMIP) is progressing well, expected to be completed by Q4 2025.
Werner emphasised Sampala’s strategic importance: “The timing of Sampala’s development is particularly favourable, with many Indonesian operations currently facing ore shortages.
“Ore prices remain strong at around US$30/wmt for limonite and saprolite, underscoring the strategic value of this asset.”
The company’s ENC HPAL project is nearing completion, with cathode circuit construction ready for commissioning.
Commercial operations are now planned for early 2026, pending the granting of the Izin Usaha Industri (IUI) licence.
Focus has shifted to completing the sulphate circuit by October or November, and finalising the HPAL smelter by year-end.
Margins improved at the Huayue HPAL project (HNC) during the quarter, supported by strong mixed hydroxide precipitate (MHP) payabilities at about 90 per cent of the London Metal Exchange (LME) nickel price.
This helped cushion rising operating costs caused by higher sulphur prices.
Werner said: “We’re particularly encouraged by HNC’s performance, where margins improved by 12 per cent over the previous quarter and remain above US$6,000 per tonne of nickel. This bodes well for our ENC project.”
In addition to operational achievements, Nickel Industries released its 2024 Sustainability Report, reflecting alignment efforts with IFRS Sustainability Disclosure Standards and Australian Accounting Standards Board guidance.
The company also marked the successful establishment of its community-focused Foundation aimed at supporting health, education, and local livelihood initiatives.
As of 30 June, Nickel Industries holds an 80 per cent interest in the Hengjaya Nickel, Ranger Nickel, Angel Nickel, and Oracle Nickel RKEF projects; 80 per cent ownership of the Hengjaya Mine; 51 per cent of the Siduarsi Nickel Cobalt Project; 10 per cent of HNC; and 44 per cent of the ENC HPAL project nearing production.
The company has also signed binding agreements to acquire a 60 per cent stake in the Sampala Project, reinforcing its growth strategy in Indonesia’s nickel sector.
