Indonesia-focused Nickel Industries has enhanced its position as the biggest ASX-listed diversified nickel producer with the release of its September-quarter results on Tuesday, highlighted by a strong uplift in production, earnings and sales.
Increased production and lower costs contributed to record earnings before interest, taxes, depreciation and amortisation (Ebitda) of $120.7-million.
“We are delighted to report another record quarter of 33 852 t of nickel metal as we enjoyed the first full quarter of contribution from our ramped-up Oracle Nickel operations,” said MD Justin Werner.
“This quarterly production number equates to 135 408 t on an annualised basis and makes us easily Australia’s largest listed diversified nickel producer, well ahead of our nearest peers BHP’s Nickel West (83 000 t/y) and Independence Group (36 000 t/y),” he said.
Nickel Industries reported a significant increase in Ebitda across all its operations with the Hengjaya mine enjoying a record quarter of $23.1-million in Ebitda, a 93.6% increase on the June quarter and the Oracle Nickel rotary kiln electric furnace (RKEF) operations delivering $97.6-million in Ebitda, a 122.3% increase on the June quarter.
Headquartered in Sydney, Nickel Industries has become a world leader in the production of low-cost nickel pig iron (NPI) – a key ingredient in the production of stainless steel – utilising Class 2 product.
In 2022, the company diversified into Class 1 product, commencing production of nickel in high grade nickel matte, for use in the electric vehicle supply chain.
Nickel Industries owns a world-class nickel laterite mine and produces the lowest capital-intensive, and some of the most profitable, units in the nickel global market in partnership with Tsingshan, the world’s largest, low-cost stainless-steel producer.
The group’s principal operations are the Hengjaya Nickel, Ranger Nickel and Oracle Nickel RKEF projects and the Huayue Nickel Cobalt high pressure acid leach project located within the Indonesia Morowali Industrial Park (IMIP); the Angel Nickel RKEF project located within the Indonesia Weda Bay Industrial Park; and the Hengjaya mine located 12 km from the IMIP.
For the quarter under review, the company held an 80% interest in the Hengjaya, Ranger and Angel RKEF projects, increased from a 70% to an 80% interest in the Oracle Nickel RKEF project, an 80% interest in the Hengjaya mine and acquired a 10% interest in Huayue Nickel Cobalt HPAL project.