Nickel Industries Limited (ASX: NIC) has released its Quarterly Activities Presentation for the period ended 31 Mar 2026, reporting total Adjusted EBITDA from operations of US$135.6 million.
Figure 1: Nickel Industries Limited corporate logo [Courtesy: Nickel Industries Limited]
The Nickel Industries quarterly earnings result reflects a strong rebound across the Company’s RKEF, HPAL, and mining divisions, underpinned by higher nickel prices and a significant recovery in Hengjaya Mine production 2026.
The ASX nickel stock news follows a difficult December quarter, when industry-wide RKAB disruptions weighed heavily on mining output. All three operating segments delivered material quarter-on-quarter improvements, with the mining division swinging from a loss to a profit of US$29.0 million.
Q1 2026 Financial Performance Across All Segments
Nickel Industries quarterly earnings were driven by three distinct revenue streams, each posting meaningful gains compared to Q4 2025. The RKEF division was the largest contributor, with Adjusted EBITDA rising 145% to US$85.8 million.
The HPAL division added US$20.7 million, up 21%, while the mining segment contributed US$29.0 million after recording a loss of US$14.9 million in the prior quarter.
Where the Money Came From
NPI Prices Jump 19% and RKEF Earnings Follow
Nickel Industries’ RKEF division, in which the Company holds an 80% indirect interest, produced 30,264 metric tonnes of nickel metal in Q1 2026, down 4% from the December quarter due to a decline in nickel grade from 11.7% to 11.0%.
NPI production in tonnage terms rose 2% to 274,086 metric tonnes. Combined operating cash costs were US$10,453 per metric tonne of nickel, 4% higher quarter on quarter, primarily reflecting lower grades and higher electricity costs.
The key driver of the earnings result was a 19% increase in realised NPI contract pricing to US$13,201 per metric tonne. This caused Adjusted EBITDA per tonne to rise 155% to US$2,842 per metric tonne, lifting total RKEF revenue to US$396.2 million for the period ended 31 Mar 2026.
Hengjaya Mine Roars Back After a Difficult December
Hengjaya Mine production 2026 staged a decisive turnaround from the RKAB-disrupted December quarter. Total ore production rose 138% to 3,959,084 wet metric tonnes (wmt), while total sales volumes surged 222% to 3,042,663 wmt following new RKAB approval. Nickel Industries holds an 80% interest in the Hengjaya Mine.
Unit operating costs fell 61% to US$15.7 per wmt, reflecting the operational leverage of higher volumes across a largely fixed cost base.
The Hengjaya Mine generated Adjusted EBITDA of US$29.0 million compared to a loss of US$14.9 million in Q4 2025, with Adjusted EBITDA per wmt recovering to US$9.5 per wmt.
Indonesian Government HPM Price Change
On 15 Apr 2026, the Indonesian Government announced revisions to the nickel ore Mineral Benchmark Price (HPM).
Limonite HPM was increased to approximately US$41 per wmt for 1.1% nickel content, while saprolite HPM was raised to approximately US$49 per wmt for 1.5% nickel content.
These compare to recent market prices of approximately US$24 per wmt and US$57 per wmt, respectively. The Company is monitoring the implications of these changes for its mining operations.
ENC Project Advances Toward Commissioning
The ENC integrated HPAL project completed pre-commissioning of major infrastructure during the quarter, including the power plant, water supply, acid plant, counter-current decantation circuit, thickeners, precipitation tanks, storage tanks, and autoclaves at the Smelter.
Figure 2: Aerial view of the ENC integrated nickel refinery under construction in Indonesia [Courtesy: Nickel Industries Limited]
Additional resources were directed to the Hengjaya Mine site, covering the primary limonite feed preparation plant, slurry pipelines, tailings filtration, and dry stack tailings areas.
Commissioning of the integrated HPAL operation using Hengjaya Mine ore is expected to commence in May 2026 and extend through to July 2026. Full nameplate production is targeted for October 2026.
The ENC HPAL sulfur inventory for ramp-up through to September 2026 was secured at an average price of US$450 per metric tonne.
Figure 3: ENC HPAL Smelter facility featuring integrated sulphuric acid plant and power infrastructure in Indonesia [Courtesy: Nickel Industries Limited]
Sphere completed deferred payments for its 10% interest in the ENC Project at a US$2.4 billion valuation during the quarter. Sphere is a key accredited supplier to SpaceX, and its investment is described by the Company as strong external validation of NIC and ENC as global showcases for sustainable, low-carbon nickel production.
Debt Refinancing Strengthens Balance Sheet
Subsequent to the end of the quarter, Nickel Industries established a new US$450 million unsecured facility comprising a US$350 million term loan and a US$100 million revolving credit facility.
Figure 4: Nickel Industries Limited debt maturity profile before and after refinancing [Courtesy: Nickel Industries Limited]
The facility refinances US$398 million in existing bank loans and supports general working capital requirements.
- Interest rate: SOFR plus 3.5% for the first six months, then a leverage-linked margin of 2.25% to 4.50%
- Amortisation commences after six months with 5.875% quarterly principal repayments, with final maturity on 30 June 2030
- Post-refinancing net debt of approximately US$994 million, comprising US$800 million in senior notes and US$256 million in cash
- Leverage covenant maximum increased to 3.50x net debt to EBITDA
- Weighted average life of 3.8 years post-refinancing
The Company also had US$50 million in undrawn debt headroom at the end of the quarter, providing additional liquidity flexibility heading into the ENC commissioning phase.
Zero Injuries, Millions of Safe Hours and a Forest to Protect
Nickel Industries recorded zero lost time injuries across 4.8 million safe man-hours during Q1 2026. The Company-wide 12-month lost time injury frequency rate (LTIFR) as at 31 Mar 2026 was 0.00.
The 12-month rolling total recordable injury frequency rate (TRIFR) was 0.45. For the full 12 months to 31 Mar 2026, the Company registered 17.7 million safe man-hours with no lost time injuries recorded.
The Company noted a fatal accident involving a contractor engaged by PT Fajar Metal Industry for the construction of transmission lines at the Hengjaya Mine site.
Full support has been extended to the victim’s family. Following a comprehensive investigation, all haul road activities at the mine resumed on 9 Apr 2026, with transmission line work expected to recommence shortly.
NIC ASX Share Price
Nickel Industries Limited (ASX: NIC) is currently trading at A$1.060 per share, with a market capitalisation of A$4.40 billion. The 52-week range stands at A$0.525 to A$1.070 per share.
Figure 5: Nickel Industries Limited (ASX: NIC) 12-month share price performance chart [Courtesy: ASX]
Industry Outlook
The global nickel market is experiencing a structural shift as demand from stainless steel producers and battery manufacturers continues to compete for supply.
Indonesia remains the world’s dominant nickel ore producer, and regulatory developments such as the revised HPM pricing announced in April 2026 are expected to reshape the economics of ore sales across the sector.
Integrated HPAL operations capable of producing mixed hydroxide precipitate are increasingly positioned as the preferred supply pathway for battery-grade nickel, attracting capital from technology and industrial players seeking low-carbon credentials.
Future Direction and Impact on NIC Investors
- ENC HPAL commissioning expected to begin in May 2026, with full nameplate production targeted for October 2026, representing a significant step change in the Company’s production and earnings profile
- Sampala Project feasibility study submitted for the ANN IUP, with ETL feasibility study approval expected in Q2 2026, and haul road construction to commence upon regulatory clearance
- Siduarsi Project advancing toward feasibility study approval for approximately 2 million wmt per annum capacity
Figure 6: Sampala Mine construction progress and site map showing haul road development and the broader project footprint in Central Sulawesi, Indonesia [Courtesy: Nickel Industries Limited]
- Indonesian HPM nickel ore pricing changes to be monitored for their impact on Hengjaya Mine revenue and margins in Q2 2026 and beyond
- New US$450 million debt facility provides balance sheet flexibility through the ENC ramp-up period, with net debt of approximately US$994 million and US$50 million in undrawn headroom
- HPAL MHP sale shipments delayed from March are expected to be recognised in Q2 2026, providing a near-term earnings tailwind
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Frequently Asked Questions
Q1. What was Nickel Industries’ total Adjusted EBITDA for Q1 2026?
Ans. Nickel Industries reported total Adjusted EBITDA from operations of US$135.6 million for the period ended 31 Mar 2026, up significantly from Q4 2025 across all three operating segments.
Q2. What drove the improvement in Hengjaya Mine production 2026?
Ans. Hengjaya Mine production 2026 recovered strongly following the RKAB disruption that impacted the December quarter. New RKAB approval enabled total ore sales to rise 222% to 3,042,663 wmt, with unit operating costs falling 61% to US$15.7 per wmt.
Q3. What is the ENC Project, and when is it expected to be operational?
Ans. ENC is an integrated HPAL smelter project. Commissioning is expected to begin in May 2026, with full nameplate production targeted for October 2026.
Q4. What is the status of Nickel Industries’ debt refinancing?
Ans. Subsequent to quarter end, the Company established a new US$450 million unsecured facility, refinancing US$398 million in existing bank loans. Post-refinancing net debt stands at approximately US$994 million with a weighted average life of 3.8 years.
Q5. How did the RKEF division perform in Q1 2026?
Ans. The RKEF division delivered Adjusted EBITDA of US$85.8 million, up 145% from Q4 2025, driven by a 19% increase in realised NPI contract pricing to US$13,201 per metric tonne.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. All content is based on the Quarterly Activities Presentation released by Nickel Industries Limited (ASX: NIC) for the period ended 31 Mar 2026. Share price and market capitalisation data reflect figures provided at the time of publication. Investing in securities involves risk. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the companies or organisations mentioned.
Sources
https://www.fool.com.au/2026/04/29/nickel-industries-reports-march-quarter-earnings/
https://www.asx.com.au/markets/company/NIC
Tags: ASX: NIC, Nickel Industries Limited, Quarterly Last modified: April 29, 2026
