The S&P/ASX 200 Index (ASX: XJO) and most ASX 200 stocks have had a phenomenal run over the past week or two.
It was only back on 18 January that the ASX 200 was sitting at under 7,350 points. But fast forward to today, and that same index has vaulted up to over 7,600 points. That's a rise worth more than 3.6%. Just yesterday, we also saw the ASX 200 get within a whisker of its all-time record high.
But let's talk about one ASX 200 stock that puts those gains to shame.
It's ASX 200 nickel producer Nickel Industries Ltd (ASX: NIC). Nickel Industries shares have enjoyed an extraordinary run over the past six trading days. Back on Tuesday 23 January, the company was asking 56 cents a share. But today, those same shares are going for 79 cents each.
That's up a whopping 8.97% today alone, as well as up over 41% from 23 January.
So what on earth is going on with this ASX 200 nickel stock that has prompted this incredible spike in value for investors?
ASX 200 stock catapults after positive quarterly update
Well, it seems the biggest contributor to this jump in value is Nickel Industries' latest quarterly earnings report. Of the 40% or so the ASX 200 stock has jumped in the past six trading days, more than 30% of those gains occurred yesterday and today thus far.
Released yesterday, this report revealed both record nickel production and sales volumes. As we went through at the time, Nickel Industries reported production of 34,450 tonnes of nickel over the three months to 31 December. That was up from 29,367 tonnes over the previous quarter.
Nickel Industries was also able to sell a record 34,427 tonnes of nickel over the quarter, an 18% jump from the previous quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) did fall over the quarter, dropping from US$97.6 million down to US$85.1 million. Still, Nickel Industries had US$1.3 billion in cash and inventory in the bank as of 31 December.
Also worth noting was Nickel Industries' new share buyback program. In addition to a more generous dividend policy, the ASX 200 stock has committed to return "up to" $100 million to investors through on-market share buybacks over the coming 12 months.
So considering all of this, it's not hard to see why ASX 200 investors might be keen to buy up Nickel Industries shares right now. Despite these healthy gains though, the Nickel Industries share price remains down by more than 28% over the past 12 months.
