Nickel Industries Delivers Strong Earnings Growth Despite Weather Disruptions

March 25, 2025 12:00 AM AEDT | By Team Kalkine Media

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Nickel Industries Delivers Strong Earnings Growth Despite Weather Disruptions — Image source: shutterstock

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Highlights

Quarterly earnings rise despite weather impact.

Mengjaya mine delivers strong output.

Operations resume after furnace shutdown.

Nickel Industries (ASX:NIC) has projected a notable earnings uplift for the March quarter, reporting resilience in the face of challenging weather conditions across its Indonesian operations. Despite heavy rainfall and flooding, the company expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) to range between US$85 million and US$90 million—reflecting a 20% increase compared to the previous December quarter.

This growth has been supported by robust performance at the company’s Hengjaya Mine, which delivered 2.6 million wet metric tonnes of nickel ore during the quarter. The consistent output underscores the operational strength of the site, even amid adverse weather events.

Nickel Industries confirmed that the significant rainfall had impacted certain parts of its infrastructure, temporarily disrupting operations. Specifically, the Oracle Nickel project’s electric furnaces were taken offline for three days due to flooding. However, the company has since resumed furnace operations, reporting no major damage or long-term setbacks.

The ability to maintain high production levels and continue delivering strong financial performance despite these environmental challenges highlights operational resilience. The March quarter results place the company on solid footing as demand for nickel continues to rise globally, particularly with its increasing role in battery manufacturing and electric vehicle supply chains.

Investors and industry observers are closely watching nickel producers as the metal becomes more critical in global clean energy and technology transitions. Nickel Industries' ability to weather environmental disruptions while improving earnings reflects positively on its strategic positioning and efficiency.

With operations stabilised and output levels sustained, the company’s outlook remains focused on performance-driven expansion. Nickel Industries continues to build on its established presence in Indonesia—one of the world’s leading sources of nickel—and is strategically aligning itself to benefit from long-term demand trends.

This earnings forecast adds to recent momentum for the company, which earlier in the month saw its share price lift following the quarterly performance update. As the March quarter draws to a close, further operational updates and full quarterly results are expected to offer deeper insight into how the company navigated recent challenges and maintained forward momentum.

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