Up 113% since April, why this $4 billion ASX 200 mining stock is tipped to keep outperforming in 2026

A leading broker forecasts more outperformance from this surging ASX 200 mining stock.

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S&P/ASX 200 Index (ASX: XJO) mining stock Nickel Industries Ltd (ASX: NIC) has enjoyed a stellar run since hitting multi-year lows on 9 April.

Nickel Industries shares closed down 2.66% on Wednesday, trading for 92 cents each. That sees the miner commanding a market cap of nearly $4 billion.

Despite that slip, shares in the ASX 200 mining stock remain up an impressive 113% since closing at 42.5 cents apiece on 9 April.

If you're not familiar with Nickel Industries, the company owns a portfolio of mining and downstream nickel processing assets in Indonesia. The miner has a controlling interest in the Hengjaya nickel mine, as well as four rotary kiln electric furnace projects. These produce nickel pig iron (NPI) for the stainless-steel industry.

Nickel Industries is also increasingly focused on producing materials for the electric vehicle battery supply chain.

Nickel Industries shares tipped to gain another 14%

With an eye on the global commodity rally and Nickel Industries' promising prospects, Canaccord Genuity analyst Timothy Hoff recently upgraded the ASX 200 mining stock from a hold rating to a buy rating (courtesy of The Bull).

Canaccord also upped its share price target to $1.05, from the prior 80 cents per share. That represents a potential upside of 14% from Wednesday's closing price.

What's the latest from the ASX 200 mining stock?

Nickel Industries is off to a strong start in 2026, with shares up 8.9% year to date.

Shares in the ASX 200 mining stock closed up 7.8% on 2 January after the company announced that South Korean-listed Sphere Corp will acquire a 10% stake in the Excelsior Nickel Cobalt (ENC) HPAL project.

The deal values ENC at US$2.4 billion.

According to the release, ENC is a next-generation HPAL (High Pressure Acid Leach) project capable of producing mixed hydroxide precipitate (MHP), nickel and cobalt sulphate, and nickel cathode.

Nickel Industries will maintain its 44% shareholding in ENC, with Sphere entering an offtake agreement for ENC nickel cathode at market prices, including volumes above its 10% ownership share.

ENC is targeting annual production of 72,000 tonnes of nickel metal once commissioned.

Commenting on the deal with Sphere that sent the ASX 200 mining stock sharply higher on the day, Nickel Industries managing director Justin Werner said:

This transaction marks the first offtake agreement for ENC material into Western markets, and we are particularly pleased that it is into the growing aerospace and aeronautical industries, which demands the highest product quality and is forecast to grow by approximately 8% CAGR [compound annual growth rate] to 2030.

Sphere has an existing 10-year supply contract with Elon Musk's SpaceX.

Motley Fool contributor Bernd Struben 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.

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