Full Year 2024 Nickel Industries Ltd Earnings Call Transcript
Key Points
- Nickel Industries Ltd (NICMF) reported a strong EBITDA of USD 296.8 million despite challenging market conditions.
- The company declared a final dividend of AUD 0.015 per share, resulting in a full-year dividend of AUD 0.04 per share, reflecting a greater than 5% dividend yield.
- Record production of 135,602 tonnes of nickel was achieved in 2024, with ENC construction progressing ahead of schedule.
- Significant corporate developments include increased ownership in ENC to 44% and the acquisition of 60% of the world-class Sampala project.
- The company achieved notable ESG milestones, including a low carbon intensity of 6.9 tonnes of carbon per tonne of nickel and several awards for climate reporting and transparency.
- Nickel Industries Ltd (NICMF) faced a net loss after tax of USD 189.8 million due to impairments and high ore costs.
- The company had to account for a USD 205 million impairment of older RKEF assets, impacting financial results.
- Global nickel market conditions were challenging, with significant declines in LME and NPI prices.
- The company experienced margin compression, with RKEF margins declining from 2023 to 2024.
- There are concerns about the impact of Indonesia's mandate for natural resource companies to retain 100% of FX revenues in Indonesia for 12 months, which could affect working capital.
Thank you for standing by, and welcome to the Nickel Industries Limited 2024 FY results call. (Operator Instructions)
I would now like to hand the conference over to Mr. Justin Werner, Managing Director. Please go ahead.
Thank you, and thank you, everyone, for your attendance at the Nickel Industries full-year 2024 results call.
Could I please ask the slide moderator to move the slide deck to slide 3, please?
Despite what has been a very challenging 12-month period with multiyear lows across global nickel markets, we still managed to deliver USD296.8 million EBITDA adjusted for HNI and RNI impairment and FX losses of USD17 million and at USD186.7 million gross profit.
Unfortunately, accounting standards led to the USD 205 million impairment of our older RKEF assets, HNI, and RNI. These assets do not benefit from integrated power and they are older assets.
However, both of those RKEFs, HNI and RNI, did generate positive EBITDA for 2024
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