Nickel Industries (NIC) Investor update summary

Strategic transactions and partnership structure

• Entered binding agreements for two major transactions, expanding HPAL involvement and securing a 36% stake in CNE HPAL via a share swap, monetising an 18% Sampala Project interest, and acquiring a 17.5% stake in TMI for $169 million cash.

• Sampala Project's upgraded resource exceeds 1 billion wet metric tonnes at 1.2% nickel, serving as the exclusive ore supplier for CNE and supporting long-term supply security.

• Transactions value Sampala stake at over US$1.3 billion, representing a 5.4x uplift, and CNE at US$671 million pre-money.

• Both projects are fully funded from existing cash and cash flow, with a CapEx guarantee and debt backstop from Tsingshan if needed; no additional CapEx required.

• Strategic partners include Korean and Japanese firms and an undisclosed EV supply chain investor, aligning with government objectives and further diversifying into the EV battery supply chain.

Production, financial impact, and operational updates

• Combined, the transactions deliver approximately 17,000 tonnes of attributable nickel in MHP at a capital intensity of $10,500 per tonne, well below industry peers.

• Attributable production: TMI (6,775 tonnes), CNE (10,208 tonnes), with all ore supplied from Sampala via slurry pipeline.

• Expected annualized EBITDA from retained and new interests could reach $254 million at current margins, with a potential one-year payback at conservative HPAL margins.

• Both companies have applied for tax holidays, enhancing project economics, and there is no debt at the asset level; all investments are equity funded.

• CNE and TMI commissioning expected mid to late 2027, with both projects potentially reaching nameplate before year-end 2027; ENC project targets first MHP in July and nameplate by October.

Market positioning, strategic outlook, and governance

• Nickel product mix will be about one-third HPAL and two-thirds NPI, with no plans to expand NPI due to a government moratorium on new NPI and HPAL projects.

• Further growth opportunities in Indonesia are limited to upstream resources; overseas opportunities are being considered but are less attractive due to lack of incentives.

• Dividend outlook will depend on future earnings and margins, with recent investments temporarily reducing funds available for dividends.

• Transaction subject to shareholder approval at an EGM, regulatory approvals, and confirmatory due diligence, with further details to be provided in an Explanatory Memorandum.

• CNE represents one of the last large-scale HPAL growth opportunities due to the Indonesian moratorium, and the transaction strengthens downstream integration.