Nickel Industries (NIC) H2 2023 earnings summary

Executive summary

• Record FY 2023 production of 131,126 tonnes of nickel and Group EBITDA of US$403.3M; revenue rose 54.5% YoY to US$1,880.1M.

• Operating growth came from established RKEF operations, Oracle Nickel’s ramp-up, maiden HPAL contribution and record Hengjaya Mine output.

• Funding and strategic investments advanced the transition toward class-1 battery-grade nickel, including a positive FID for the ENC HPAL project.

Financial highlights

• Revenue US$1,880.1M, up 54.5% YoY; gross profit US$338.0M, up 15.0%; operating profit US$280.7M, up 8.4%.

• Profit after tax US$176.2M, down 15.8% YoY; profit attributable US$121.6M, down 23.5%.

• Group EBITDA US$403.3M, up 18.9% YoY; RKEF EBITDA US$337.2M, up 12.9%; mine EBITDA US$87.9M, up 63.1%.

• Full-year dividends were A$0.045/share, versus A$0.04/share in FY 2022.

Outlook and guidance

• Hengjaya Mine ore sales expected to rise materially in 2024 as output and trucking volumes expand following completion of the direct haul road to IMIP in August 2023.

• ENC is designed as a 72kt HPAL plant, with potential to exceed 144kt subject to funding; products may include MHP, nickel sulphate and nickel cathode.

• ENC has a construction guarantee of no more than two years, covering construction, commissioning and ramp-up to nameplate capacity.

• Carbon targets are a 50% reduction in carbon intensity by 2035 and net-zero emissions by 2050.