The Nickel Industries Ltd (ASX: NIC) share price is under the spotlight today after the company released its December 2025 quarterly report, highlighting US$37.3 million in adjusted EBITDA from operations and strong margins from its HPAL division, despite mining headwinds.
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What did Nickel Industries report?
- Adjusted EBITDA from operations: US$37.3 million, down 57% from Q3
- RKEF division production: 31,561 tonnes nickel, up 1%; adjusted EBITDA of US$35.0 million, down 13%
- HPAL division (HNC) attributable EBITDA: US$17.2 million, up 32%; record margin of US$8,012/t Ni
- Mining operations adjusted EBITDA: –US$14.9 million, hit by a delayed RKAB extension
- Cash and cash equivalents as at 31 December: US$361.1 million
- No lost time injuries reported in the quarter; TRIFR of 0.68
What else do investors need to know?
Nickel Industries' mining segment was impacted by a late government approval for its mining plan (RKAB), which delayed ore sales until mid-December and led to higher operating costs for the quarter. However, operations rebounded strongly in the final weeks and are on track for over 1.4 million wet metric tonnes (wmt) of ore sales in January.
On the corporate front, the company secured Sphere Corp – a SpaceX supplier – as a 10% strategic partner in its Excelsior Nickel Cobalt HPAL project (ENC), marking the first long-term offtake agreement for ENC nickel cathode into Western aerospace markets. During the quarter, Nickel Industries also made progress commissioning its ENC HPAL project, with full production targeted towards the end of the March quarter.
What did Nickel Industries management say?
Managing Director Justin Werner said:
Whilst the quarter was impacted by a delay in the issuance of an extended RKAB for 2025, the Company was able to ramp up mine operations quickly once an extended RKAB was secured and is on track to sell approximately 1.4 million wmt of ore in January. Approval of the revised AMDAL during the quarter to support an increased RKAB of 19 million wmt for 2026 was a major milestone, and the Company remains confident of securing its increased RKAB imminently. Pleasingly, our HNC operations recorded their strongest margin of $8,012/t, which bodes very well for the commissioning of ENC, which is targeted to commence towards the end of the March quarter. … Finally, with both LME and NPI prices off to a strong start in 2026, the imminent commissioning of ENC and increase in ore sales should set the Company up for a strong 2026.
What's next for Nickel Industries?
Investors can watch for the full commissioning and ramp-up of the large-scale ENC HPAL project, which is set to lift production and diversify market exposure. The company is focused on securing a higher 2026 mining quota and boosting ore sales volumes.
Nickel Industries continues prioritising sustainability and safety, including delivering Indonesia's largest solar project to supply renewable energy for the ENC HPAL plant. These initiatives aim to strengthen its reputation as a low-carbon nickel producer with recognised ESG credentials.
Nickel Industries share price snapshot
Over the past 12 months, Nickel Industries shares have risen 18%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
