ASX-listed Nickel Industries has generated $135-million of adjusted earnings before interest, taxes, depreciation and amortisation in the quarter ended March 31, marking the strongest quarterly earnings since December 2023.

The company says this performance was underpinned by more than three-million tonnes of ore sales from the Hengjaya mine, in Indonesia, and improved pricing across its product mix.

Notably, Nickel Industries’ margins across its nickel pig iron (NPI) operations grew by 155% from $1 114/t in the quarter ended December 31, 2025, to $2 842/t in the reporting quarter. At its high-pressure acid leach operations (HPAL), margins increased by 20% from $8 307/t to $9 992/t over the same periods.

A key development during the quarter was the approval of an increased 2026 quota sales licence for the Hengjaya Mine, which rose from nine-million tonnes to 14.3 million tonnes a year.

MD Justin Werner says this is a significant achievement given most Indonesian mining peers had experienced reductions in their allowable volumes, and noted that tighter supply controls by the Indonesian government had contributed to a rise in the London Metal Exchange nickel price by 16% quarter-on-quarter.

This has flowed through to higher realised prices for both NPI and mixed hydroxide precipitate, while operating costs at the company’s Indonesian Rotary Kiln Electric Furnace (RKEF) operations increased only modestly.

During the quarter, the company also increased its interest in the Excelsior Nickel Cobalt (ENC) HPAL project from 44% to 46% through the acquisition of an additional 2% stake for $46-million.

This project remains under construction, with pre-commissioning of major processes and infrastructure having progressed during the reporting period. Commissioning is now expected in May, with full ramp-up targeted by the end of October this year.

Werner affirms Nickel Industries has taken steps to manage input cost volatility, including stockpiling sulphur required for HPAL operations ahead of commissioning at prices well below current spot levels.

“The company remains focused on the successful commissioning of the ENC HPAL and refinery facilities during the June quarter and looks forward to delivering another strong quarter from its existing operations,’’ he adds.

Nickel Industries’ RKEF operations produced 274 086 t of NPI during the quarter, up 2% on the December quarter, although contained nickel production declined slightly owing to lower ore grades. Higher realised prices lifted earnings, with adjusted earnings per tonne having risen significantly over the period.

Development activity also continued across the company’s growth pipeline, with progress at both the Sampala and Siduarsi projects. Feasibility work advanced at Sampala in particular, alongside ongoing drilling and construction of internal haul roads.

Subsequent to the end of the quarter, Nickel Industries executed $450-million in syndicated unsecured loan facilities, refinancing existing bank debt. The transaction reduces the company’s cost of borrowing and extends debt maturities, while maintaining financial flexibility.

The company concludes the quarter highlighted the benefit of its diversified operating base, with stronger earnings across processing operations offsetting market and regulatory changes affecting ore supply.