Nickel Industries Reports US$41.2M Loss in 2025 with US$800M Debt Refinancing and Ore Quota Boost

Financial Performance and Debt Refinancing

Nickel Industries Limited (ASX:NIC) has sharply reduced its net loss for the 2025 financial year to US$41.2 million, down from a hefty US$189.8 million loss in 2024. This improvement comes despite ongoing volatility in global nickel markets, with production and sales volumes holding steady compared to the prior year. The company’s disciplined capital management was highlighted by a successful US$800 million senior unsecured notes issuance at a 9% coupon, maturing in 2030, which refinanced higher-cost debt and extended maturities, improving liquidity and reducing near-term amortisation obligations.

Operational Adjusted EBITDA for the year was US$283 million, with US$150.1 million from rotary kiln electric furnace (RKEF) operations and US$57.6 million from high pressure acid leach (HPAL) projects, reflecting growing contributions from the company’s diversification into battery-grade nickel products.

Advances in Key Projects and Strategic Partnerships

The company’s flagship Excelsior Nickel Cobalt (ENC) HPAL project in Indonesia’s Morowali Industrial Park (IMIP) continued to progress, with staged commissioning underway and critical industrial licences pending early in 2026. Notably, Sphere Corp, a global supplier to aerospace giant SpaceX, acquired a 10% equity stake in ENC, valuing the project at US$2.4 billion and providing external validation of its low-carbon credentials. Sphere also secured a US$210 million senior secured amortising loan, with Nickel Industries providing credit enhancement that effectively prioritises the company’s interests in case of default.

Subsequent to year-end, Nickel Industries renegotiated its acquisition schedule with partner Shanghai Decent, reducing expected cash outflows by US$207 million and increasing its ENC stake from 44% to 46%, cementing its position as the largest shareholder in the project. This revised arrangement offers greater certainty and finality around the company’s ENC ownership commitments.

Meanwhile, the Hengjaya Mine, Nickel Industries’ core ore source, delivered record production of 19.2 million wet metric tonnes (wmt) of nickel ore in 2025. Despite substantial downtime due to delayed regulatory approvals, the mine’s 2026 Rencana Kerja dan Anggaran Biaya (RKAB) quota was increased to 14.3 million wmt, a 60% uplift from prior levels, supporting higher ore sales and integration with processing operations. This quota increase is a key enabler for the ramp-up of the ENC HPAL project and was achieved alongside innovative environmental approvals including Indonesia’s first in-pit tailings storage facility and slurry pipeline transport, reducing emissions and costs.

Exploration and Ore Supply Expansion

The company advanced exploration and development at the Sampala and Siduarsi projects, with over 100,000 metres drilled in 2025 and infrastructure such as haul roads and bridges progressing well. A 15-year exclusive memorandum of understanding was signed to supply up to 14 million wmt of limonite ore annually from Sampala to a nearby HPAL facility, incorporating first-of-its-kind slurry pipeline transport solutions that could unlock value from previously uneconomic low-grade saprolite ore.

These developments strengthen Nickel Industries’ pathway toward ore self-sufficiency and long-term supply security amid anticipated constraints.

Sustainability and ESG Initiatives

Nickel Industries continues to embed sustainability into its operations. The Hengjaya Mine expanded its electric truck fleet from 8 to 37 units in 2025, complemented by electric loaders and excavators deployed across RKEF assets, delivering significant energy efficiency gains and operating cost reductions. The company is also a participant in the SESMO solar and battery energy storage project in IMIP, which reached financial close in January 2026 and will supply renewable power to the ENC HPAL project under a 25-year fixed tariff agreement.

Community and environmental programs remain a priority, with the company planting over two million trees for watershed rehabilitation and supporting local education through scholarships. These efforts have earned multiple awards, including Indonesia’s Green PROPER rating for environmental performance and international recognition for community engagement.

Governance and Leadership

The company’s board and management team, led by Executive Chairman Norman Seckold and Managing Director Justin Werner, have overseen a period of strategic progress despite challenging market conditions. Remuneration frameworks were enhanced in 2025 with the introduction of short- and long-term incentive programs tied to financial and ESG performance metrics.

Nickel Industries maintains a strong governance focus on climate-related risks and opportunities, committing to a 50% reduction in carbon intensity by 2035 and net zero emissions by 2050. The company’s inaugural mandatory climate disclosures under AASB S2 provide detailed scenario analyses and risk assessments, highlighting both physical and transition risks with financial implications and mitigation strategies.

Looking Ahead

As Nickel Industries moves into 2026, the commissioning of the ENC HPAL project and expanded ore sales from Hengjaya Mine are key near-term catalysts. The company’s revised ENC acquisition schedule reduces cash outflows, enhancing financial flexibility. Meanwhile, ongoing exploration and infrastructure development at Sampala and Siduarsi underpin growth ambitions.

With nickel prices recovering and ESG credentials strengthening, the company is positioning itself to capitalize on the accelerating global energy transition. However, execution risks around project commissioning, regulatory approvals, and market volatility remain critical to watch.

This progress follows the company’s recent reduced loss and sustainability drive and the significant increase in 2026 ore quota, which together provide a clearer pathway for operational and financial improvement.