Nickel Industries (NIC) Q2 2025 earnings summary

Executive summary

• Achieved $86 million adjusted EBITDA for Q2 2025, with record ore sales at Hengjaya Mine and strong progress on project developments; first half unaudited adjusted EBITDA reached $183.6 million.

• Released the 2024 Sustainability Report, established the Nickel Industries Foundation, and advanced ESG and community initiatives.

• Maintained strong safety performance with LTIFR at 0.05 and only one LTI over 18.6 million work hours in the past 12 months; TRIFR at 1.29.

Financial highlights

• RKAB/RKEF nickel metal production was 30,463 tonnes, down 4% sequentially due to kiln realignment and maintenance; RKEF Adjusted EBITDA fell 24% to $33.7 million.

• HPAL attributable nickel production was 2,075 tonnes, with EBITDA of $10.8 million, down 51% quarter-over-quarter; HPAL EBITDA per tonne margin increased to $4,819.

• Hengjaya Mine achieved record ore sales of 3,021,678 wmt, with Adjusted EBITDA up 33% to $41.4 million and EBITDA per tonne margin rising to $13.7.

• Cash and equivalents at quarter-end were $145.3 million; inventories increased by $83.0 million due to raw material build-up.

Outlook and guidance

• ENC integrated refinery commissioning deferred to Q1 2026 to align with expected IUI license; sulphate circuit completion targeted for Q4 2025.

• Anticipates RKAB mining permit approval in Q3, aiming for annual ore sales capacity significantly above 12 million tonnes, potentially up to 19 million wmt.

• Sampala project targeting first ore delivery in early second half of next year, subject to permitting and haul road completion.

• Expecting working capital build to unwind in the second half, improving cash flow.