Half Year 2026 Nickel Industries Limited Earnings Call Transcript
Key Points
- Adjusted EBITDA surged 46% to $247.6 million, driven by a 21% increase in NPI prices and strong performance across all business segments.
- Commissioning of the E&C project is progressing well, with first MHP and cathode production achieved, and the company remains on track to reach nameplate capacity by year-end.
- The Sampala resource upgrade to over 1 billion wet metric tonnes and the share swap for a 36% interest in C&E provide significant growth potential with no cash outlay.
- Mining margins are strengthening, with June quarter EBITDA per tonne at $15.90 and expectations of further improvement in H2 2026 due to new HPM pricing.
- The company is well-positioned for growth with a clear path to $1 billion EBITDA in 2-3 years, supported by low-cost integration, tax concessions, and a strong balance sheet with $260 million cash.
- Nickel production was slightly down due to scheduled maintenance at ANI and ONI, and a kiln rebuild at one of the RKEF lines.
- Cash costs increased 13% to $11,400 per tonne due to higher benchmark saprolite ore pricing and royalties.
- The commissioning of the third autoclave at E&C is subject to water availability, which is a challenge due to an extremely dry season.
- Sulfur costs remain a pressure point, though the company has a stockpile buffer of 44,000 tonnes.
- The company faces uncertainty regarding RKAB quota increases, with no formal confirmation from the government on additional allocations.
Hello, and welcome to the Nickel Industries Limited 2026 half-year results call. (Operator Instructions)
I will now turn the conference over to Justin Werner, Managing Director. Please go ahead.
Thank you, everyone, and welcome to the half year results presentation. I forgot just ask the moderator to move to the next slide, please. Starter safety and ESG, zero 12-month LTIFR 12-month TFR. So it's a world-class safety figures 18 million safe man hours worked over the past 12 months. In terms of -- once again, we were awarded the Green PROPER rating from the Indonesian Ministry of Environment and Forestry 1 of only 3 nickel mining companies to achieve that rating.
We entered into an agreement to look at feasibility of natural hydrogen in and around the Hengjaya mining lease, which could offer a potentially low-cost clean energy source in the future. We inaugurated a 197-hectare biodiversity conservation area, a short distance from the Hengjaya Mine. And again, one
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
