The Nickel Industries Ltd (ASX: NIC) share price is in focus today after the company reported US$80 million in adjusted EBITDA from operations for April and May 2026, with operations rebounding strongly in May. Key highlights also include an expected US$70 million working capital distribution and progress at the Excelsior Nickel Cobalt HPAL project.
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What did Nickel Industries report?
- Adjusted EBITDA from operations of approximately US$80 million for April and May 2026
- April EBITDA of US$29 million impacted by Hengjaya Mine downtime and planned maintenance
- May EBITDA rebounded to approximately US$51 million
- Release of RKEF working capital with ~US$70 million to be received by early July 2026
- Refund of US$15 million option fee from Shanghai Decent relating to the ONI matte converter
- ENC project commissioning progressing, with first ore received in May and MHP expected by July
What else do investors need to know?
Nickel Industries opted not to move forward with its investment in the ONI matte converter, instead favouring HPAL technology, which supports higher margins and a greener production footprint. This led to a US$15 million refund from its largest shareholder, Shanghai Decent, highlighting collaboration and strong relationships.
The company's strategic focus continues to be on developing the Excelsior Nickel Cobalt (ENC) HPAL project, which is receiving ore and progressing toward producing mixed hydroxide precipitate (MHP) by mid-July 2026. Nickel cathode production is on track for mid-August, while commissioning of the refinery and leach-circuit is due in late June, aiming to register its cathode with the LME and SHFE.
What did Nickel Industries management say?
Managing Director Justin Werner said:
We are very pleased with the Company's recent performance. After a softer April, impacted by downtime at the Hengjaya Mine and planned maintenance at the RKEFs, our operations rebounded strongly in May to deliver approximately US$51m in Adjusted EBITDA, underscoring the quality and resilience of our asset base.
Our balance sheet also continues to strengthen, with our RKEF operations unwinding a substantial amount of working capital and Nickel Industries expects to receive around US$70m in distributions by early July. Together with the US$15m option-fee refund from Shanghai Decent, this reflects strong cash generation and disciplined capital management across our portfolio.
Commissioning of our transformational ENC project is well underway, with ore received at the limonite feed preparation plant in May, slurry to the ENC Smelter in the coming week, MHP anticipated by mid-July and nickel cathode expected by mid-August – defining milestones as we diversify our production towards the electric vehicle battery supply chain.
What's next for Nickel Industries?
Looking ahead, the company is focused on ramping up production at the Excelsior Nickel Cobalt HPAL project. Expectations are for first mixed hydroxide precipitate production in July and first nickel cathodes by mid-August, which should strengthen the company's position in supplying the global electric vehicle battery supply chain.
With the anticipated inflow of US$70 million from RKEF operations and cost discipline across its portfolio, Nickel Industries says it remains committed to sustainable growth, carbon footprint reduction, and capital management. The company is also targeting registration of its nickel cathode on major global exchanges in the coming months.
Nickel Industries share price snapshot
Over the past 12 months, Nickel Industries shares have risen 38%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
