Nickel Industries (NIC) Q2 2026 earnings summary

Executive summary

• Achieved 80 million man-hours LTI-free over 12 months, maintained ESG leadership with a Green PROPER rating, and recorded a 12-month LTIFR of 0.00 and TRIFR of 0.45, among the highest safety standards in Indonesian nickel mining.

• Sampala resource upgraded to over 1.095 billion wet metric tonnes at 1.24% nickel, positioning as one of the largest global nickel resource holders and valued at over $1.3 billion after a share swap for a 36% interest in CNE HPAL.

• Produced first MHP from ENC HPAL in July, targeting first cathode in August, marking a major operational milestone and full value chain integration.

• Hengjaya Mine delivered record quarterly adjusted EBITDA of $45.7 million, up 58% sequentially, driven by higher nickel ore prices following Indonesian government policy changes.

• Maiden dividend of $3.5 million received from HPAL operations.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $120.5 million, down 11% sequentially due to maintenance and CNE swap; attributable EBITDA was $99.3 million.

• First half 2026 EBITDA from operations reached $256 million, nearly matching full year 2025 EBITDA of $283 million.

• Hengjaya Mine delivered $45.7 million in adjusted EBITDA, up 58% sequentially, while RKEF operations EBITDA fell to $60.3 million due to maintenance.

• HPAL segment achieved $14.4 million adjusted EBITDA, with strong margins at $8,090 per tonne despite lower sales volumes and higher costs.

• Cash increased from $210 million to $270 million during the quarter, supported by $82 million in cash flow before debt growth; net debt at quarter end was $982 million after refinancing $450 million in syndicated loan facilities.

Outlook and guidance

• On track for a significantly stronger 2026 compared to 2025, with continued strong mine EBITDA expected.

• ENC HPAL ramp-up targets nameplate capacity by Q4 2026, with first cathode production in August and LME/SHFE registration to follow.

• RKEF operations expected to rebound post-maintenance, with kiln and furnace rebuilds to improve performance and lower costs over the next year.

• Sampala and Siduarsi projects progressing through regulatory and feasibility stages, with Sampala production expected to commence in Q2 2027.

• HPAL commissioning at CNE and TMI expected to commence mid-2027.