Image source: © 2025 Krish Capital Pty. Ltd.
Highlights
Bell Potter assigns BUY rating with a price target of AUD 1.40, implying 89.19% upside.
Mining EBITDA of NIC jumped 33% to USD 41.4 million on record ore sales and improved pricing.
HPAL operations exceeded nameplate capacity with 2,075 tonnes of nickel and 188 tonnes of cobalt produced.
Nickel Industries Ltd (ASX:NIC) has received a vote of confidence from leading investment firm Bell Potter Securities, which has reiterated its BUY rating on the stock with a price target of AUD 1.40 — reflecting a potential upside of 89.19% from current levels. The rating might comes as the company posts encouraging operational figures in its June 2025 quarterly update, particularly from its mining division.
Analyst Confidence Backed by Long-Term Value Potential
The latest recommendation from Bell Potter's analyst David Coates reflects continued confidence in Nickel Industries. Despite some quarter-on-quarter fluctuations, the company's diversified operations and integrated exposure to both nickel production and mining might have been seen as strategic advantages.
Mining Segment Performance Lifts Overall Results
Nickel Industries delivered record mining ore sales of 3,021,678 wet metric tonnes (wmt) during the June 2025 quarter — a 6% increase over the March quarter. This translated into USD 41.4 million in mining EBITDA, a 33% surge from the prior quarter’s USD 31.0 million. The company attributed the improvement to higher nickel ore pricing and increased sales volumes, which more than offset rising operating costs.
The EBITDA per tonne also improved by 25%, coming in at USD 13.7/t.
Mixed Outcomes Across Nickel Production Units
The company’s Rotary Kiln Electric Furnace (RKEF) operations produced 30,463 tonnes of nickel metal, down 4.0% from the March quarter. RKEF EBITDA also declined by 24% to USD 33.7 million, impacted by lower output.
On the High-Pressure Acid Leach (HPAL) front, attributable production reached 2,075 tonnes of nickel and 188 tonnes of cobalt in mixed hydroxide product (MHP) — exceeding nameplate capacity by 38%. While HPAL EBITDA fell 51% quarter-on-quarter to USD 10.8 million, the performance still reflects meaningful progress in ramp-up activities. The HNC joint venture EBITDA improved by 11% due to favourable MHP pricing.
The trading division, however, reported a drop in its performance, with EBITDA falling 94% to USD 0.8 million, attributed to changes in ENC refinery commissioning and residual contract settlements.
Positioned for Long-Term Nickel Demand Growth
Despite quarter-to-quarter variances, NIC’s integrated model — combining upstream ore mining with downstream nickel processing.
Please wait processing your request...