Nickel Industries Shares Rise 5% as Indonesian Producer Rebounds From Lows After Record Mining Quarter

SYDNEY — Shares of Nickel Industries Ltd. rose more than 5% on Tuesday, rebounding from near multi-year lows as Australian resources stocks joined a broad market rally.

Nickel Industries shares gained 3.25 cents, or 5.33%, to 64.25 Australian cents in afternoon trading. About 6.5 million shares changed hands, valuing the company at about A$2.8 billion. The stock is still down about 7.6% over the past year.

The company did not release market-sensitive news on Tuesday.

Market rally

The gain came on a strong day for the market. The ASX 200 moved sharply higher, with gains across most sectors led by mining and technology stocks.

Trading near lows

The rebound follows a prolonged decline. After its third-quarter update on Oct. 22, Nickel Industries shares last traded at 68.8 cents, near the bottom of their 52-week range of 66 cents to $1.125. The stock has since fallen below that range before Tuesday's bounce.

Record mining quarter

The company's operations have shown mixed results. Adjusted EBITDA rose to $125.9 million from the June quarter, with mining delivering a record quarter and the ENC project reaching important commissioning milestones.

Its nickel pig iron business was squeezed. Investing.com described the quarter as a record for mining amid an RKEF squeeze, referring to the company's rotary kiln electric furnace operations.

Cash pressure

Cash fell during the quarter. The company's cash position declined to US$145.9 million at quarter-end from US$268.3 million at the end of June, a US$122.4 million decrease.

Management addressed funding concerns. It said it may use a Tsingshan facility if needed, but expects operating cash flow and an OCBC distribution to cover near-term obligations.

Investors appeared cautious after the update, focusing on near-term cash flow and weather-related disruptions.

ENC project

A new high-pressure acid leach project is a key growth driver. ENC began commissioning in May, produced first MHP in July and first cathode in August, and management said the project is on track to reach nameplate capacity by the end of 2026, although water availability remains a near-term constraint.

The company holds a 10% indirect interest in HNC and a 46% indirect interest in ENC, and received US$13.0 million in distributions from HNC during the quarter.

Guidance

Nickel Industries maintained its FY26 guidance across key operating metrics.

About the company

Sydney-based Nickel Industries is one of the world's leading low-cost producers of nickel pig iron, a key material used in stainless steel, and also produces nickel matte. Its operations include the Hengjaya nickel project in Indonesia, the Oracle Nickel and Ranger Nickel RKEF projects and the Hengjaya Mine, a high-grade nickel laterite deposit.

What's next

Investors will watch nickel prices, cash flow and the ramp-up of ENC to nameplate capacity for signs the stock can recover further.

This article is for informational purposes only and is not investment advice.