Nickel Industries Reports $135M Quarterly EBITDA as NPI Margins Surge and Hengjaya Mine Output Expands
Nickel Industries has reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $135 million for the quarter ended March 31, marking its strongest quarterly performance since December 2023.
The company attributed the result to more than 3 million tonnes of ore sales from its Hengjaya mine in Indonesia, alongside improved pricing across its product portfolio.
A key driver of profitability was the sharp improvement in margins across its nickel pig iron (NPI) operations, which increased by 155%, rising from $1,114 per tonne in the quarter ended December 31, 2025, to $2,842 per tonne in the reporting period.
At its high-pressure acid leach (HPAL) operations, margins also strengthened, increasing by 20% from $8,307 per tonne to $9,992 per tonne over the same period.
Production Expansion and Licensing Boost
During the quarter, Nickel Industries secured approval for an increased 2026 sales quota for the Hengjaya mine, raising allowable output from 9 million tonnes to 14.3 million tonnes per year.
Managing Director Justin Werner described the approval as a significant achievement, noting that many Indonesian mining peers have faced reductions in permitted production volumes.
He added that tighter supply controls imposed by the Indonesian government contributed to a 16% quarter-on-quarter increase in the London Metal Exchange nickel price.
This improved pricing environment supported higher realised prices for both nickel pig iron and mixed hydroxide precipitate (MHP), while operating costs at the company’s Indonesian rotary kiln electric furnace (RKEF) operations increased only modestly.
Strategic Investment and Project Development
Nickel Industries also increased its stake in the Excelsior Nickel Cobalt (ENC) HPAL project from 44% to 46%, following a $46 million acquisition of an additional 2% interest.
The project remains under construction, with pre-commissioning of major systems progressing during the quarter.
Commissioning is now expected in May, with full ramp-up targeted for the end of October this year.
Werner stated that the company has also taken steps to mitigate input cost volatility, including the early stockpiling of sulphur required for HPAL operations at prices significantly below current market levels.
He added that Nickel Industries remains focused on successfully commissioning the ENC HPAL and refinery facilities during the June quarter, with expectations for continued strong operational performance.
Operational Performance and Output
The company’s RKEF operations produced 274,086 tonnes of NPI during the quarter, a 2% increase compared to the December quarter.
However, contained nickel output declined slightly due to lower ore grades. Despite this, stronger realised prices significantly boosted earnings, with adjusted earnings per tonne rising sharply over the period.
Growth Pipeline and Financing
Development work also progressed across the company’s broader pipeline, including the Sampala and Siduarsi projects.
At Sampala, feasibility studies advanced alongside ongoing drilling and internal haul road construction.
After the end of the quarter, Nickel Industries completed $450 million in syndicated unsecured loan facilities, refinancing existing bank debt.
The transaction reduces borrowing costs, extends debt maturities, and strengthens the company’s financial flexibility.
The company concluded that its diversified operational base continues to provide resilience, with stronger processing margins helping to offset regulatory and market fluctuations affecting ore supply.
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