Why is the Nickel Industries share price smashing the ASX 200 today?

Nickel Mines provided a positive update to the ASX on Wednesday.

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Nickel Mines shares climb 3.31% to a daily high of $1.09 
  • The company announced it has completed its US$225 million senior secured notes offer 
  • Proceeds will be put towards making final payment to increase its ownership in Oracle to 70% 

The Nickel Mines Ltd (ASX: NIC) share price is belting the S&P/ASX 200 Index (ASX: XJO) today.

At the time of writing, the nickel producer's shares are up 3.31% to an intraday high of $1.09 apiece.

In comparison, the benchmark ASX 200 index is up 0.65% to 7,007.1 points.

Why are Nickel Mines shares powering ahead?

Investors are bidding up the Nickel Mines share price following the company's update of its senior secured notes offering.

According to its release, the company advised it has completed the issuance of its US$225 million senior secured notes. The notes are priced at an interest rate of 10% per annum, payable on a quarterly basis in arrears.

The final maturity date will be on 23 August 2025.

In addition to the company's cash reverses, the proceeds from the Notes will be used to finalise the acquisition and ramp-up of the Oracle Nickel Project.

Nickel Mines managing director, Justin Werner commented:

Completion of this issuance has positioned the company to increase its ownership interest in Oracle Nickel to 70% and meet the remaining payment obligations for the acquisition.

The early commissioning of the Oracle Nickel RKEF lines, expected in October, will allow us to significantly bring forward nickel production. Our trusted partner Shanghai Decent continues to deliver operationally with near-term commissioning.

The company will soon have 12 RKEF lines in operation and approximately 100kt of attributable nickel production, placing us comfortably amongst the top-10 global producers.

Also providing a boost is the S&P/ASX 300 Metals and Mining Industry (ASX: XMM). The index is among the best performers today, up 1.21% to 5,548.5 points.

Nickel Mines share price summary

Extreme volatility in 2022 has led the Nickel Mines share price to register a loss of 25%.

However, in the past 12 months, the share is up 5% following strong gains achieved towards the backend of 2021.

Based on today's price, Nickel Mines presides a market capitalisation of roughly $3.14 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

ASX expert: Buy Lynas shares now

Top broker Goldman Sachs has this ASX rare earths share on its conviction list.

Read more »

Kid stacking coins from the jar.
Resources Shares

1 ASX penny stock I'd buy in April while it is still only 21 cents

Up 135% since February, I think this ASX penny stock has a lot more gains ahead.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Resources Shares

2 ASX copper stocks to buy now for this 'explosive price upside'

I think both ASX copper stocks could continue to deliver outsized gains in 2024.

Read more »

Smiling mine worker at mining site with colleagues.
Resources Shares

How BHP stock could unseat the world's top copper producer

With copper prices surging in 2024, BHP’s portfolio of copper mines are in the spotlight.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

These ASX 300 mining stocks could rise 25% to 50%

Analysts think these mining stocks could deliver big returns for investors.

Read more »

Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue share price
Resources Shares

2 ASX mining stocks smashing the market on Tuesday

Shareholders of these mining shares will be smiling today.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Why top brokers say Rio Tinto stock is a better buy than BHP

The Rio Tinto share price could soar 20% over the coming year, outpacing BHP's share price gains.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

The BHP share price is down 12% in 2024. What's next for the iron ore price?

BHP shares have struggled in 2024 amid sliding iron ore prices. Will the pain persist?

Read more »