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Nickel Mines Ltd. (AU:NIC)
ASX:NIC
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Nickel Mines Ltd. (NIC) AI Stock Analysis

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AU:NIC

Nickel Mines Ltd.

(Sydney:NIC)

Rating:46Neutral
Price Target:
AU$0.50
▼(-30.56% Downside)
Nickel Mines Ltd. faces significant challenges in financial performance and valuation, with technical indicators also showing a bearish trend. While the earnings call highlighted some operational strengths, the immediate financial and operational risks weigh heavily on the overall score.

Nickel Mines Ltd. (NIC) vs. iShares MSCI Australia ETF (EWA)

Nickel Mines Ltd. Business Overview & Revenue Model

Company DescriptionNickel Mines Ltd. (NIC) is an Australia-based company engaged in the extraction and production of nickel. The company primarily operates in the mining sector, with a focus on developing and managing nickel mines in Indonesia. Nickel Mines Ltd. leverages its strategic partnerships and joint ventures to enhance its production capabilities and deliver high-quality nickel products, which are essential components in the manufacturing of stainless steel and batteries.
How the Company Makes MoneyNickel Mines Ltd. generates revenue through the extraction, production, and sale of nickel products. The company owns and operates several nickel projects, primarily in Indonesia, which are key sources of nickel ore. These ores are processed to produce nickel pig iron (NPI) and other nickel products. The company's revenue model is heavily reliant on its ability to efficiently extract and process nickel ore, which is then sold to various industries, including the stainless steel and battery manufacturing sectors. Strategic partnerships and joint ventures with local and international companies play a significant role in enhancing production capabilities and expanding market reach. Additionally, fluctuations in global nickel prices and demand directly impact the company's earnings.

Nickel Mines Ltd. Earnings Call Summary

Earnings Call Date:Aug 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with both strong operational achievements and some challenges. Record ore sales and strong production from HNC were highlights, but there were notable production decreases and cash flow challenges. The outlook for future projects like Sampala is positive, but immediate issues like the ENC commissioning delay and cash flow management need addressing.
Q2-2025 Updates
Positive Updates
Strong Safety and Sustainability Performance
Achieved an LTIFR of 0.05 with no lost time injuries over 4.6 million work hours for the quarter. Released the 2024 sustainability report and established the Nickel Industries Foundation and a biodiversity area.
Record Ore Sales from Hengjaya Mine
Achieved record ore sales of over 3 million wet metric tonnes with a 33% increase in EBITDA to USD 41.4 million, and EBITDA per tonne margin rose by 25%.
HNC Production Exceeds Expectations
Produced 2,075 tonnes of nickel from HPAL operations, operating 38% above nameplate capacity, and achieved a strong EBITDA margin of over USD 6,000 per tonne.
Positive Outlook for Sampala Project
Sampala project progressing well with 16 drill rigs on site and over 1,000 holes completed in the quarter. Targeting an exploration resource of over 1 billion wet metric tonnes of ore.
Negative Updates
Decrease in RKEF Nickel Production
RKEF nickel metal production decreased by 4% due to kiln realignment and power station maintenance, leading to lower EBITDA compared to the previous quarter.
Delays in ENC Cathode Plant Commissioning
Commissioning of the ENC cathode plant was deferred to better align with working capital requirements and sales license issuance, impacting short-term production plans.
Cash Flow Challenges
Cash flow from operations was broadly neutral despite a good EBITDA quarter, primarily due to a large working capital build for inventory.
Company Guidance
In the June quarter activities webcast for Nickel Industries Limited, Managing Director Justin Werner highlighted key metrics and achievements. The company reported an LTIFR of 0.05 with no lost time injuries over 4.6 million work hours in the quarter. The 12-month rolling TRIFR stood at 1.29. Financially, the quarter saw USD 86 million in adjusted EBITDA, contributing to a first-half total of USD 183.6 million, a significant improvement over the first half of 2024. RKEF nickel metal production reached 30,463 tonnes, while HPAL production from HNC was 2,075 tonnes. EBITDA margins remained robust, with MHP payabilities close to 90%, despite increased sulfur costs. The Hengjaya Mine recorded over 3 million wet metric tonnes in ore sales, with EBITDA surging by 33% from the March quarter. The company also advanced the Sampala project, aiming for a first ore delivery in the second half of 2026, with a current margin of USD 13.7 per wet metric tonne.

Nickel Mines Ltd. Financial Statement Overview

Summary
Nickel Mines Ltd. shows a mixed financial picture with a solid asset base and positive trends in free cash flow. However, challenges in revenue growth, profitability, increased financial leverage, and declining operating cash flow present significant risks.
Income Statement
45
Neutral
Nickel Mines Ltd. has experienced significant volatility in its income statement. The company saw a substantial drop in revenue from 2023 to 2024, with a negative net income indicating challenges in profitability. The gross profit and EBITDA margins have also decreased compared to prior years, reflecting operational inefficiencies or market pressures.
Balance Sheet
55
Neutral
The balance sheet shows moderate leverage with a debt-to-equity ratio that has increased over time, indicating growing reliance on debt financing. While the stockholders' equity remains strong, the equity ratio has declined, suggesting increased financial risk. Despite these concerns, the company maintains a solid asset base which provides some financial stability.
Cash Flow
50
Neutral
Cash flow analysis reveals fluctuations, with free cash flow showing positive growth in recent periods. However, the operating cash flow was negative in 2024, highlighting potential challenges in cash generation from core operations. The company needs to focus on improving operating efficiencies to enhance cash flow stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.74B2.76B1.76B860.59M760.41M
Gross Profit314.65M659.78M419.02M288.79M239.88M
EBITDA59.18M405.85M457.29M306.58M285.61M
Net Income-168.59M178.41M229.33M137.94M160.67M
Balance Sheet
Total Assets3.90B4.07B3.94B2.44B1.60B
Cash, Cash Equivalents and Short-Term Investments210.95M774.97M212.70M189.62M455.45M
Total Debt1.05B845.02M824.73M450.60M58.32M
Total Liabilities1.35B1.16B1.27B650.17M192.38M
Stockholders Equity2.12B2.43B1.91B1.38B1.22B
Cash Flow
Free Cash Flow208.79M170.76M-120.42M179.15M199.44M
Operating Cash Flow298.88M229.76M52.35M243.39M210.17M
Investing Cash Flow-288.91M-1.15B-371.39M-753.90M-330.80M
Financing Cash Flow-64.01M1.06B327.96M228.67M555.22M

Nickel Mines Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.72
Price Trends
50DMA
0.74
Negative
100DMA
0.68
Positive
200DMA
0.72
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.41
Neutral
STOCH
62.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NIC, the sentiment is Negative. The current price of 0.72 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.74, and below the 200-day MA of 0.72, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 62.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NIC.

Nickel Mines Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.31B6.290.74%2.95%3.36%-36.41%
46
Neutral
AU$3.21B17.84-7.26%5.56%-2.30%-234.27%
$4.51B22.94-5.63%
$1.78B14.197.84%1.27%
$2.54B1,408.33-35.65%5.94%
$4.46B43.31-33.95%4.54%
38
Underperform
AU$2.34B-38.95%-16.77%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NIC
Nickel Mines Ltd.
0.72
-0.07
-8.86%
PILBF
Pilbara Minerals
1.53
-0.47
-23.50%
ILKAF
Iluka Resources Limited
4.08
0.02
0.49%
IPGDF
IGO
3.60
-0.02
-0.55%
MALRF
Mineral Resources Limited
22.10
-5.46
-19.81%
AU:IPX
Iperionx Limited
6.63
4.17
169.51%

Nickel Mines Ltd. Corporate Events

Nickel Industries Reports Strong Safety Record and Sustainability Progress
Jul 30, 2025

Nickel Industries Limited reported a low lost time injury frequency rate of 0.05 for the quarter ending June 2025, with no lost time injuries recorded over 4.6 million work hours. The company released its 2024 Sustainability Report, highlighting progress towards IFRS Sustainability Disclosure Standards, the establishment of the Nickel Industries Foundation, and strategic programs in various social and environmental areas, including the creation of a conservation area within the Hengjaya Mine concession.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Advances ENC Project with Strategic Focus on HPAL Smelter
Jul 23, 2025

Nickel Industries Limited has announced progress on its Excelsior Nickel Cobalt (ENC) Project, highlighting the nearing completion of its integrated nickel refinery, which will soon commence staged commissioning. The company has decided to prioritize the completion of its ENC HPAL smelter and sulphate circuit, expecting to receive the necessary industrial business license by early Q1 2026. This strategic focus aligns with their original schedule and reflects their commitment to advancing their position in the battery chemicals market, particularly for the electric vehicle industry.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries to Release Quarterly Activities Report
Jul 9, 2025

Nickel Industries Limited has announced that it will release its Quarterly Activities Report on July 30, 2025. The report will be discussed in a webcast led by Managing Director Justin Werner, providing insights into the company’s recent activities and results, which could have implications for its operational and market positioning.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Adjusts Directors’ Interests Post-AGM Approvals
Jul 2, 2025

Nickel Industries Limited has announced changes in its directors’ interests following the issuance and conversion of Performance Rights and Share Rights, as approved at the company’s Annual General Meeting. This development reflects the company’s ongoing efforts to align its leadership’s interests with shareholder value, potentially impacting its governance and strategic direction.

The most recent analyst rating on (AU:NIC) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Limited Issues New Securities on ASX
Jul 1, 2025

Nickel Industries Limited has announced the issuance of 1,000,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code NIC. This move is part of the company’s strategy to enhance its market presence and potentially increase its capital, reflecting a positive development for stakeholders and reinforcing its position within the mining sector.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Limited Issues New Equity Securities Under Employee Incentive Scheme
Jun 30, 2025

Nickel Industries Limited announced the issuance of unquoted equity securities, including 7,215,256 performance rights and 3,000,000 share rights, as part of an employee incentive scheme. This move is likely aimed at aligning employee interests with company performance, potentially enhancing operational efficiency and shareholder value.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Unveils 2024 Sustainability Report with New ESG Initiatives
Jun 30, 2025

Nickel Industries Limited has released its 2024 Sustainability Report, highlighting its commitment to sustainable mining practices in Indonesia. The report details initiatives like the establishment of a high conservation biodiversity area and educational programs, underscoring the company’s efforts to align with global ESG standards and maintain community support.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Updates Share Registry Address
Jun 16, 2025

Nickel Industries Limited has announced a change in the address of its share registry office, which is now located at Level 4, 44 Martin Place, Sydney. This move requires all documentation lodgements by member organizations, security holders, and other parties to be submitted to the new address, ensuring continued compliance with ASX Listing Rule 3.15.1.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Limited Successfully Passes All AGM Resolutions
May 22, 2025

Nickel Industries Limited announced that all nine resolutions presented at their Annual General Meeting were passed, including the approval of the remuneration report, re-election of directors, and granting of performance and share rights. These decisions reflect the company’s commitment to maintaining strong governance and incentivizing key personnel, which is likely to support its strategic objectives and enhance shareholder value.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.55 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025