Nickel Industries posted its strongest operational earnings since December 2023 during the March 2026 quarter, with adjusted EBITDA from operations reaching US$135.6 million. The result was underpinned by a dramatic expansion in margins across the company’s rotary kiln electric furnace (RKEF) and high-pressure acid leach (HPAL) operations, signaling a substantial improvement in the nickel market environment and operational execution.
The most striking metric was the 155 percent surge in RKEF margins, climbing from US$1,114 per tonne in the December 2025 quarter to US$2,842 per tonne in the March quarter. This expansion reflects both higher nickel prices and improved processing economics at the company’s Hengjaya, Ranger, Angel, and Oracle operations. HPAL margins similarly strengthened, rising 20 percent to US$9,992 per tonne. Combined production from these operations remained relatively flat, with RKEF generating 30,264 tonnes and HPAL contributing 2,153 tonnes, indicating the margin improvement came almost entirely from favorable pricing rather than volume growth.
Mining operations delivered the quarter’s second major positive surprise. The Hengjaya Mine sold in excess of 3 million tonnes of ore during the quarter, a substantial jump from prior periods. This performance was anchored by receipt of a revised mining license that boosted annual ore sales capacity by approximately 60 percent, from 9 million tonnes to 14.3 million tonnes. Nickel Industries holds an 80 percent interest in the mine, which operates at the source of much of the company’s feed material, making expanded production capacity particularly valuable for downstream operations.
Management’s strategic positioning also strengthened during the quarter. The company acquired an additional 2 percent interest in the Excelsior Nickel Cobalt HPAL project for US$46 million, lifting its stake from 44 percent to 46 percent. This project is under construction and moving toward production, with pre-commissioning of major processes and infrastructure already underway. Following the quarter end, Nickel Industries secured US$450 million in unsecured loan facilities, providing flexibility for working capital and project development as the ENC project approaches completion.
For investors, the combination of margin expansion, mining license growth, and project financing indicates Nickel Industries has positioned itself well within the current commodity cycle. The earnings result demonstrates that the company’s operational footprint can generate substantial cash generation when the nickel market remains constructive. The key variables to monitor include the trajectory of nickel prices, the successful ramp of the ENC project into commercial production, and execution against the expanded Hengjaya mining license. The announcement has been flagged as price sensitive and material by the ASX.
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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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