How Did Nickel Industries Boost EBITDA 20% Despite Mining Sales Challenges?

Strong Operational Performance Despite Mining Sales Setback

Nickel Industries Limited delivered a solid third quarter in 2025, reporting a 20% increase in adjusted EBITDA from its rotary kiln electric furnace (RKEF) operations and a 21% rise in EBITDA from its high-pressure acid leach (HPAL) operations. These gains were achieved despite a significant drop in sales from the Hengjaya Mine in September, caused by a delay in securing an increased mining quota (RKAB) from Indonesian regulators.

The company’s integrated approach helped offset the impact of the mining sales shortfall, with strong production and cost efficiencies driving improved margins. RKEF production rose 2% quarter-on-quarter while cash costs fell 5%, aided by lower electricity expenses and higher throughput. HPAL operations outperformed nameplate capacity by 44%, benefiting from higher cobalt by-product credits amid rising cobalt prices.

Strategic Refinancing Strengthens Financial Position

On the corporate front, Nickel Industries successfully issued US$800 million in five-year senior unsecured notes at a 9% coupon, replacing existing debt with higher interest costs. This refinancing extended debt maturities, reduced the company’s cost of debt, and eliminated significant annual amortisation payments, enhancing financial flexibility. Proceeds were used to retire US$400 million of older notes and repay US$150 million in bank loans.

The refinancing attracted strong global investor interest, reflecting growing confidence in Nickel Industries’ long-term strategy and operational resilience. The company also secured a six-month deferral on the final US$253 million payment related to the Excelsior Nickel Cobalt (ENC) acquisition, easing near-term cash flow pressures.

Safety and Sustainability, Industry Leadership Recognised

Nickel Industries maintained an impeccable safety record with zero lost time injuries recorded over 18.5 million man-hours in the past year, underscoring its commitment to workforce wellbeing. The company’s sustainability credentials were further bolstered by multiple awards, including a Gold award for Biodiversity Management at the Indonesia Sustainable Responsible Awards and several trophies at the Environmental and Social Innovation Awards.

These accolades highlight Nickel Industries’ role as a thought leader in responsible mining practices and its ongoing efforts to balance operational growth with environmental stewardship.

Project Development and Exploration Progress

Progress continues on the ENC project, with integration of key infrastructure nearing completion and commissioning expected early next year. The project’s refinery is preparing for solvent extraction commissioning, aiming to produce battery-grade nickel and cobalt products.

Exploration and development activities advanced at the Sampala and Siduarsi projects, with detailed mine plans and feasibility studies submitted to Indonesian authorities. Infrastructure development at Sampala, including haul roads and accommodation, is underway, creating hundreds of jobs and positioning the company for future growth.