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Nickel Industries Faces Potential Royalty Hike Amid Expansion Plans

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Nickel Industries Faces Potential Royalty Hike Amid Expansion Plans

An announcement from Nickel Mines Ltd. ( (AU:NIC) ) is now available.

Nickel Industries Limited has announced that the Indonesian Government is considering increasing royalties on nickel ore sales, potentially impacting the company’s financials. The proposed changes would raise royalties from the current 10% to between 14% and 19%, depending on nickel prices, which could have increased the company’s 2024 royalties by approximately US$8 million. However, these changes would only affect nickel ore sales, not other nickel products or operations. The company is also expanding its production capabilities with the Excelsior Nickel Cobalt HPAL project, aligning with Indonesia’s focus on refined nickel products and not currently subject to royalties.

More about Nickel Mines Ltd.

Nickel Industries Limited is an ASX-listed company with a portfolio of mining and low-cost downstream nickel processing assets in Indonesia. The company holds controlling interests in the Hengjaya Mine and operates four rotary kiln electric furnace projects producing nickel pig iron for the stainless-steel industry. It is transitioning towards the electric vehicle battery supply chain by acquiring interests in projects like the Huayue Nickel Cobalt HPAL project and investing in the Excelsior Nickel Cobalt project, which focuses on producing mixed hydroxide precipitate, nickel sulfate, and nickel cathode.

YTD Price Performance: -6.79%

Average Trading Volume: 4,847,346

Technical Sentiment Consensus Rating: Buy

Current Market Cap: A$3.24B

Learn more about NIC stock on TipRanks’ Stock Analysis page.

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