Nickel Industries delivered a half-year result with adjusted EBITDA climbing 46 percent to US$247.6 million, outpacing the 21 percent surge in NPI pricing and reflecting both operational momentum and the emerging contributions from its expansion projects. Net profit surged to US$74.3 million from US$25.5 million in the prior half, signaling that the company has moved decisively beyond the tight operating margins that had constrained returns during weaker commodity cycles.
The strength came from three segments working in concert. Hengjaya Mine generated US$73.4 million in adjusted EBITDA from 5.9 million wet metric tons of ore sales, yielding US$12.4 per ton, demonstrating the mine’s resilience despite a 14-day operational suspension in the half. The core RKEF processing operations posted US$146.7 million in adjusted EBITDA on nickel output of 58.2 kilotonnes, where the US$13,784 per ton realization benefited from both rising spot prices and the Indonesian government’s HPM reform, which lifted benchmark ore pricing. Most significantly, the early-stage ENC HPAL project contributed US$35.2 million in adjusted EBITDA and paid out its maiden distribution of US$3.5 million after first melt production in July, validating the investment thesis for this lower-cost production route.
The balance sheet tightened in ways that matter for funding future growth. Net debt fell to US$982 million from over US$1.2 billion in December 2025, aided by a US$240 million reduction in working capital liabilities following Sphere’s investment in ENC. Management refinanced US$450 million in facilities in April at a lower cost of interest, a tactical win in a regime where rates remain elevated. With net leverage at an acceptable multiple and current assets of US$907 million, the company retains room to pursue the Sampala project, valued at over US$1.3 billion via its CNE joint venture swap, and to invest the planned capex of US$136.8 million across growth initiatives in the half.
Cash generation of US$65.4 million in the half prior to growth spending and debt movements came despite a 14-day production stoppage and growth in nickel ore stockpiles. This underscores the cash-generative nature of the business at current commodity levels and suggests that production should accelerate once the ore pipeline normalizes and ENC ramps further.
For investors, the key question is whether nickel prices hold above current levels. The half-year results assume prices in the US$13,700-14,000 per ton range for NPI and reflect a 15 percent rise in LME nickel from the prior year half. Prices remain elevated by historical standards but face headwinds from Chinese stainless steel demand and potential shifts in battery technology adoption. Nickel Industries’ ability to carry leverage and fund growth without dilution depends on this commodity tailwind persisting. Watch for commentary on FY2026 full-year guidance, any update on the Sampala project timeline now that the CNE structure is finalized, and quarterly production rates for ENC as the ramp curve becomes clearer.
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About Nickel Industries Limited (ASX: NIC)
Nickel Industries Limited is an ASX-listed mining company that owns and operates a portfolio of nickel mining and downstream processing assets located primarily in Indonesia. The company produces nickel through high pressure acid leach (HPAL) technology and rotary kiln electric furnace (RKEF) projects, supplying nickel for stainless steel production and the electric vehicle supply chain.
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