Highlights 

  • December quarter Adjusted EBITDA from operations is expected to range between USD 35m and USD 40m.
  • Delays in the 2025 RKAB approval reduced Hengjaya Mine ore sales to 945,631 wmt for the quarter.
  • HNC HPAL recorded a quarterly Adjusted EBITDA of USD 129m on a 100% basis.

Nickel Industries Limited (ASX:NIC) attracted market attention on 19 January after releasing an operating update outlining its December 2025 quarter performance. The update detailed EBITDA expectations, production disruptions linked to regulatory delays, and record quarterly earnings from its downstream HPAL operations.

December Quarter Earnings Outlook 

Nickel Industries reported that its December 2025 quarter Adjusted EBITDA from operations is forecast to be between USD 35m and USD 40m. The outcome was influenced by reduced ore sales at the Hengjaya Mine following delays in securing an increased Rencana Kerja dan Anggaran Biaya (RKAB) for 2025.

The company noted that the RKAB extension was issued on 11 December 2025, limiting ore production and sales for most of the quarter.

Hengjaya Mine Sales Impact 

Ore sales from the Hengjaya Mine declined sharply during the December quarter, falling from 3,094,230 wet metric tonnes (wmt) in the September quarter to 945,631 wmt. Nickel Industries estimated that the value of foregone ore sales during the period was approximately USD 45m.

In addition, the company incurred around USD 18m in mine contractor costs while contractors remained on standby during the regulatory delay. Operations resumed on 12 December, with production activity concentrated in the final 19 days of the month.

Improved Start to 2026 

Despite experiencing higher-than-expected rainfall, Nickel Industries reported a positive start to 2026. As at 17 January, approximately 735,000 wmt of nickel ore had already been sold from the Hengjaya Mine, indicating a rebound in shipment volumes following the resumption of operations.

The company confirmed that mine activity continues to progress under the updated regulatory framework.

Downstream Operations Deliver Record Quarter 

Nickel Industries also highlighted a record performance from its Huayue Nickel Cobalt (HNC) HPAL project, which delivered an Adjusted EBITDA of USD 129m for the quarter on a 100% basis. The HNC operation produces mixed hydroxide precipitate (MHP) used in the electric vehicle battery supply chain.

The company continues to advance its downstream processing strategy in Indonesia, including commissioning work at the Excelsior Nickel Cobalt (ENC) HPAL project, which is expected to diversify production outputs.

Share Price Movement 

Following the release of the operating update, Nickel Industries shares slipped 1.65% to AUD 0.895 at the time of writing on 19 January, as investors assessed the quarterly performance and regulatory developments.