Nickel Industries delivered a compelling operational recovery in May 2026, with Adjusted EBITDA jumping to approximately US$51m despite softer performance in April when a combination of operational disruptions constrained results to US$29m. The divergence between the two months highlights both the challenges facing the company’s operations and the underlying strength of its asset base when running at full capacity. April’s performance was pressured by eight days of downtime at the Hengjaya Mine, planned maintenance at the rotary kiln electric furnace power plants, and associated subcontractor standby costs. The strong rebound the following month demonstrates that these were largely temporary headwinds rather than structural concerns.
Beyond near-term operational performance, Nickel Industries is set to materially strengthen its balance sheet over the coming weeks. The company expects to receive approximately US$70m in RKEF working capital distributions by early July as its rotary kiln electric furnace operations unwind substantial inventory. Additionally, the company will receive a US$15m option fee refund from largest shareholder Shanghai Decent following a strategic decision to abandon plans for investment in the ONI matte converter. Combined, these cash inflows totalling US$85m underscore disciplined capital allocation and the quality of cash generation from current operations. This flexibility matters considerably for funding capital requirements and maintaining financial optionality.
The decision to forgo the ONI matte converter investment in favour of high-pressure acid leach (HPAL) technology signals a strategic pivot toward higher-margin, lower-carbon nickel production aligned with electric vehicle battery supply requirements. This positions the company advantageously as global EV manufacturers increasingly prioritise sustainability credentials and supply chain transparency. The refund from Shanghai Decent, a long-time cornerstone investor, also speaks to an aligned relationship where capital is deployed only when expected returns justify the outlay.
The Excelsior Nickel Cobalt (ENC) HPAL project, positioned as transformational for the company’s portfolio, continues advancing steadily toward production. The limonite feed preparation plant received first ore in May, with the sulphuric acid plant and first of three autoclaves scheduled for commissioning in the coming days. Slurry transport from the Hengjaya Mine to the ENC smelter is expected imminently, followed by mixed hydroxide precipitate production by mid-July and nickel cathode production by mid-August. These represent significant execution milestones that, if achieved, will enable registration of ENC cathode on both the London Metal Exchange and Shanghai Futures Exchange, unlocking premium pricing channels and establishing the company as a material player in class-1 nickel supply.
Investors should monitor ENC ramp-up execution closely as the project transitions from construction commissioning to steady-state production over coming months. The ability to deliver the stated production profile and achieve metallurgical and operational targets will be crucial. This announcement has been classified as price sensitive and material by the ASX.
View the full ASX announcement (PDF)
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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