Nickel Industries Q3 Adjusted EBITDA Rises 4% on Hengjaya Mine Record

Nickel Industries Limited’s adjusted EBITDA rose 4% sequentially to $125.9 million for the three months ended Sept. 30 as record ore sales at Hengjaya Mine offset lower adjusted EBITDA from its nickel-processing operations.

Attributable EBITDA increased to $102.4 million from $99.3 million in the June quarter. Nickel Industries’ quarterly financial figures are unaudited and based on monthly reports from its operating entities.

The company’s 80%-owned Hengjaya Mine sold 4,485,170 wet metric tonnes of ore, up 56% from the previous quarter. Adjusted EBITDA at the mine climbed 68% to $76.9 million, while unit operating costs fell 15% to $18.50 per wet metric tonne.

Adjusted EBITDA from the rotary kiln electric furnace (RKEF) segment declined 33% sequentially to $40.7 million. The segment produced 27,822 tonnes of nickel and sold 26,837 tonnes. Adjusted EBITDA from the high-pressure acid leach (HPAL) segment fell 42% to $8.4 million.

Unusually dry El Niño conditions restricted water availability at the 46%-owned Excelsior Nickel Cobalt project. Hengjaya Mine recorded seven millimeters of rain from early August through Oct. 21, compared with a 10-year average of 474 millimeters for August through October. Excelsior reached half of its nameplate capacity before water constraints reduced output.

During the quarter, Excelsior produced 4,840 tonnes of nickel and 494 tonnes of cobalt in mixed hydroxide precipitate, as well as 818 tonnes of nickel cathode. The project made no sales while awaiting an industrial business license. Nickel Industries expects the license in the fourth quarter of 2026.

Managing Director Justin Werner called the September quarter “another strong, consistent quarter of EBITDA.”

After the quarter, project operator PT Fajar Metal Industry signed a $245 million non-recourse financing facility on Oct. 21. It includes a $220 million amortizing term loan and a $25 million working capital facility. The term loan has a seven-year tenor from first drawdown and an annual margin of 2% above the Secured Overnight Financing Rate.