Nickel Industries (NIC) Q4 2024 earnings summary

Executive summary

• Achieved strong operational consistency and stability in 2024, with record production and EBITDA contributions from key assets, including 32,784 tonnes of nickel and US$72.4M EBITDA in the December quarter.

• Maintained industry-leading safety and ESG performance, with LTIFR at 0.11, TRIFR at 1.43, and multiple sustainability awards.

• Sampala Project exploration advanced significantly, with high-grade nickel and cobalt intercepts and a world-class exploration target of 350–700 million dmt at 0.9–1.1% nickel.

Financial highlights

• Group EBITDA from operations was US$72.4M for the quarter, with record quarterly contribution of US$14.7M from a 10% interest in HNC HPAL.

• RKEF underlying EBITDA rose 17.5% quarter-over-quarter to US$42.0M, with underlying EBITDA per tonne increasing to US$1,309.

• Hengjaya Mine delivered US$35.6M EBITDA in the quarter, with annual unaudited EBITDA exceeding US$110M.

• Cash and cash equivalents increased to US$222.4M at quarter-end.

Outlook and guidance

• ENC HPAL construction is ahead of schedule, targeting first production in H2 2025, with all autoclaves and major equipment on site.

• RKAB quota increase from 9M to 19M tonnes at Hengjaya Mine expected in H2 2025, supporting higher production.

• Sampala Project to commence with 6M tonnes per annum in 2026, ramping to 20M tonnes, pending approvals.

• Targeting US$1B annualized EBITDA within 2–3 years, with all major growth initiatives fully funded.