Nickel Industries faced a challenging December quarter due to delayed regulatory approvals impacting ore sales, yet the company kicked off 2026 with robust nickel ore sales and record earnings from its HPAL project.
- December quarter Adjusted EBITDA from operations estimated at US$35m–US$40m
- Delayed 2025 RKAB approval cut Hengjaya Mine ore sales by two-thirds
- Foregone ore sales valued at approximately US$45m plus US$18m in contractor standby costs
- Hengjaya Mine resumed operations mid-December and sold 735,000 wmt of nickel ore by mid-January
- Huayue Nickel Cobalt HPAL project achieved a quarterly record Adjusted EBITDA of US$129m
Quarterly Performance Under Pressure
Nickel Industries Limited has reported a subdued December 2025 quarter, with Adjusted EBITDA from operations expected between US$35 million and US$40 million. This represents a notable dip primarily attributed to a delayed regulatory approval process for the Hengjaya Mine’s 2025 work plan and budget (RKAB), which significantly curtailed ore sales.
The delay meant ore sales plummeted from over 3 million wet metric tonnes in the previous quarter to under 1 million in December. This disruption not only impacted revenue but also led to additional costs, including approximately US$18 million in contractor standby expenses while operations were paused.
Resilience and Recovery
Despite these setbacks, operations at Hengjaya Mine resumed on 12 December and demonstrated resilience by delivering a strong performance in the final 19 days of the quarter. The company has carried this momentum into 2026, with nickel ore sales reaching approximately 735,000 wet metric tonnes by mid-January, even in the face of unexpected heavy rainfall.
Managing Director Justin Werner acknowledged the frustration caused by the regulatory delay but expressed optimism about the company’s trajectory. "We are extremely pleased to start 2026 strong," he said, highlighting the swift recovery and ongoing operational strength.
Strategic Shift Towards Battery Materials
Beyond mining operations, Nickel Industries is actively transitioning its product focus towards the electric vehicle battery supply chain. The company recently acquired a 10% stake in the Huayue Nickel Cobalt (HNC) High Pressure Acid Leach (HPAL) project, which achieved a quarterly record Adjusted EBITDA of US$129 million on a 100% basis during the December quarter.
Looking ahead, Nickel Industries is commissioning the Excelsior Nickel Cobalt (ENC) HPAL project, expected to produce around 72,000 tonnes of nickel metal annually. This next-generation facility will diversify production into mixed hydroxide precipitate, nickel sulphate, and nickel cathode, while also reducing the company’s carbon emissions footprint; a clear nod to sustainable mining practices.
Outlook and Market Implications
The recent operational challenges underscore the sensitivity of mining operations to regulatory timelines and environmental factors. However, Nickel Industries’ ability to rebound quickly and its strategic pivot towards battery materials position it well in a market increasingly focused on clean energy and electric vehicles.
Investors will be watching closely how the company manages future regulatory approvals and the ramp-up of its HPAL projects, which are critical to its long-term growth and sustainability goals.
Bottom Line?
Nickel Industries’ recovery from regulatory delays and strategic shift towards battery materials set the stage for a pivotal 2026.
Questions in the middle?
- How will future RKAB approvals be managed to avoid operational disruptions?
- What is the timeline and expected impact of the Excelsior Nickel Cobalt HPAL project commissioning?
- How will the company balance growth ambitions with sustainability commitments amid market volatility?