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Highlights

  • Nickel Industries is an ASX-listed nickel ore mining and nickel pig iron production organisation
  • In FY23, the company’s revenue increased by almost 55% to USD 1,880 million
  • PT Danusa Tambang Nusantara has the maximum stake in the firm with a shareholding of nearly 20%

Nickel Industries Ltd (ASX:NIC) is a nickel ore mining and nickel pig iron production organization. With operations in Indonesia and Singapore, the company has interest in the Hengjaya Mine, Ranger Nickel project and in the Angel Nickel project.

In the financial year 2023 (FY23), revenue of NIC surged by 54.48% YoY to USD 1,880 million, underpinned by increased sales in RKEF projects, Nickel ore mining and HPAL Projects in FY23. During the reported period, gross profit increased by almost 15% YoY to USD 338.03 million.

Profit during the year dropped by 15.85% YoY to USD 176.20 million, due to a rise in director’s fees, financial expenses, consultant’s expenses and other expenses.

Top 10 Shareholder of NIC

The top 10 shareholders of NIC have around 64.69% shareholding, while the top four have nearly 46.51% of the shareholding. PT Danusa Tambang Nusantara, and Decent Investment International Pte. Ltd. have maximum stakes in the firm with a shareholding of ~20% and ~16.40%, respectively.

Recent business update

On 31 July 2024, NIC released an update for the second quarter of FY24. During the quarter, RKEF Nickel metal production touched 31,975 tonnes on a 100% basis, demonstrating a rise of 0.4% over the previous quarter.

During the reported period, Hengjaya Mine posted an EBITDA of USD 24.6 million, reflecting a growth of 62.9% over the previous quarter. As of 30 June 2024, NIC’s cash and cash equivalent balance was USD 358.1 million.

The quarter witnessed the acquisition of a further 13.75% stake in the Excelsior Nickel Project. After the end of the quarter, a further 16.5% stake was acquired, taking the total equity interest to 44%.

Outlook

The Excelsior Nickel Cobalt HPAL project targets production of 72k metric tons of nickel every year by creating three major class 1 nickel products, nickel sulfate, nickel cathode and MHP.

With August signaling the beginning of the dry season, NIC is preparing to ensure a better result in the second half of FY24.

Share performance of NIC

NIC shares closed at AUD 0.825 apiece on 20 August 2024. In the last one year, NIC’s share price has increased by 10.74%, while in the last three months, it has dropped by 22.54%.

52-week high of NIC is AUD 1.085, recorded on 21 May 2024, while its 52-week low is AUD 0.540, recorded on 23 January 2024.

NIC Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 20 August 2024. The reference data in this report has been partly sourced from REFINITIV.