Nickel Industries Posts US$80m EBITDA and Advances ENC HPAL Project Milestones
Nickel Industries reported a robust US$80 million Adjusted EBITDA for April-May 2026, driven by a strong May rebound and significant working capital releases. The company also progressed commissioning of its Excelsior Nickel Cobalt HPAL project, targeting nickel cathode production by mid-August.
- April-May 2026 Adjusted EBITDA of US$80 million
- US$70 million working capital release expected by early July
- US$15 million refund from Shanghai Decent over ONI matte converter
- Excelsior Nickel Cobalt project commissioning underway with key milestones
- Focus on electric vehicle battery supply chain and sustainable production
April Operations Hit by Downtime, May Delivers Strong Recovery
Nickel Industries (ASX:NIC) posted combined Adjusted EBITDA of approximately US$80 million for April and May 2026, with a marked turnaround after a subdued April. The softer month, which delivered US$29 million in EBITDA, was weighed down by eight days of downtime at the Hengjaya Mine, subcontractor standby costs, and planned maintenance on the rotary kiln electric furnace (RKEF) power plants. May’s performance rebounded sharply, contributing about US$51 million to the two-month total and highlighting the resilience of the company’s asset base.
Working Capital Release and Refund Boost Cash Position
Alongside operational gains, Nickel Industries is set to receive roughly US$70 million in distributions by early July, stemming from the unwinding of working capital in its RKEF operations. This inflow, combined with a US$15 million refund from its largest shareholder Shanghai Decent related to the company’s decision not to proceed with the ONI matte converter investment, underscores strong cash generation and disciplined capital management. The refund reflects a strategic pivot towards high-pressure acid leach (HPAL) technology, which offers better margins and lower carbon emissions for class-1 nickel supply.
Excelsior Nickel Cobalt Project Commissioning Progresses
Commissioning of the Excelsior Nickel Cobalt (ENC) HPAL project is well underway. The limonite feed preparation plant received its first ore in May, and the sulphuric acid plant is scheduled for ignition imminently. The first of three autoclaves is set for commissioning shortly, with slurry transport between the Hengjaya Mine and the ENC smelter to follow. The company anticipates first ore to the autoclave by early July, with mixed hydroxide precipitate (MHP) production expected mid-month. Refinery leach-circuit commissioning will begin in late June, targeting nickel cathode output by mid-August. This production milestone will facilitate ENC cathode registration on the London Metal Exchange and Shanghai Futures Exchange, marking a significant step into the electric vehicle battery supply chain.
Strategic Shift Towards Sustainable Nickel Production
Nickel Industries continues to transition from traditional nickel pig iron production towards battery-grade nickel products, aligning with global electric vehicle demand. The company’s 46% stake in ENC represents a transformative move, with the project expected to produce over 72,000 tonnes of nickel metal annually while reducing carbon emissions. This strategic focus complements prior expansions, such as the 10% interest in the Huayue Nickel Cobalt HPAL project, broadening the company’s exposure to mixed hydroxide precipitate (MHP) and cobalt sulphate products.
Bottom Line?
Nickel Industries’ operational rebound and strategic commissioning milestones position it well for growth in the battery metals sector, though execution risks remain as ENC ramps up.
Questions in the middle?
- Will ENC commissioning meet its mid-August nickel cathode production target?
- How will the shift to HPAL technology affect Nickel Industries’ margin profile long term?
- What impact will working capital releases have on the company’s broader capital allocation plans?
