Nickel Mines Ltd. (NIC) AI Stock Analysis

• Market Cap: AU$3.10B
• Dividend Yield: 5.63%
• Average Volume (3M): 5.07M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 2.05
• Revenue Growth: -2.30%
• EPS Growth: -234.27%
• Country: AU
• Employees: 40,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 4,340,936,000
• 10 Day Avg. Volume: 4,823,424
• 30 Day Avg. Volume: 5,068,555
• PEG Ratio: 0.09
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 10.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.91
• Price Target Upside: 28.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 52 Neutral
• Price Target: AU$0.50 ▼(-29.58% Downside)

Nickel Mines Ltd. has a mixed outlook with a solid asset base and positive operational achievements, but faces challenges in profitability and cash flow management. The technical indicators suggest a neutral to slightly bearish trend, while the valuation reflects recent financial struggles despite a high dividend yield. The earnings call provided a balanced view with both strengths and areas needing improvement.

Nickel Mines Ltd. Business Overview & Revenue Model

Company Description

Nickel Industries Limited engages in nickel ore mining and nickel pig iron production operations in Singapore and Indonesia. The company holds an 80% interest in the Hengjaya Mine that covers an area of 5,983 hectares located in the Morowali Regency of Central Sulawesi; 80% interest in the Ranger Nickel project; and 70% interest in the Angel Nickel project. It also has an option to acquire a 70% interest in the Oracle Nickel project. The company was formerly known as Nickel Mines Limited and changed its name to Nickel Industries Limited in June 2022. Nickel Industries Limited was incorporated in 2007 and is headquartered in Sydney, Australia.

How the Company Makes Money

Nickel 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. 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.74B	2.76B	1.76B	860.59M	760.41M
Gross Profit	314.65M	659.78M	419.02M	288.79M	239.88M
EBITDA	59.18M	405.85M	457.29M	306.58M	285.61M
Net Income	-168.59M	178.41M	229.33M	137.94M	160.67M
Balance Sheet
Total Assets	3.90B	4.07B	3.94B	2.44B	1.60B
Cash, Cash Equivalents and Short-Term Investments	210.95M	774.97M	212.70M	189.62M	455.45M
Total Debt	1.05B	845.02M	824.73M	450.60M	58.32M
Total Liabilities	1.35B	1.16B	1.27B	650.17M	192.38M
Stockholders Equity	2.12B	2.43B	1.91B	1.38B	1.22B
Cash Flow
Free Cash Flow	208.79M	170.76M	-120.42M	179.15M	199.44M
Operating Cash Flow	298.88M	229.76M	52.35M	243.39M	210.17M
Investing Cash Flow	-288.91M	-1.15B	-371.39M	-753.90M	-330.80M
Financing Cash Flow	-64.01M	1.06B	327.96M	228.67M	555.22M

Nickel Mines Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.71 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.74, and below the 200-day MA of 0.71, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ILU	71 Outperform	2.69B	14.13	9.80%	0.95%	-4.84%	-30.61%
MIN	58 Neutral	7.54B	-8.33	0.00%	―	-15.27%	-817.26%
PLS	57 Neutral	7.28B	-36.18	-5.54%	―	-38.69%	-174.12%
NIC	52 Neutral	AU$3.10B	17.84	-7.26%	5.63%	-2.30%	-234.27%
IGO	47 Neutral	3.63B	-3.81	-45.62%	5.43%	-37.23%	-32433.33%
IPX	38 Underperform	2.22B	-38.54	0.00%	―	0.00%	-16.77%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nickel Mines Ltd. Corporate Events

Nickel Industries Reports Strong Safety and Sustainability Achievements

Nickel Industries Limited reported its half-year results, highlighting significant achievements in safety and sustainability. The company registered over 22.6 million work hours since the last lost time injury in November 2021, maintaining a low lost time injury frequency rate of 0.05 as of June 2025. Additionally, the company has made strides in sustainability, with the establishment of the Nickel Industries Foundation and initiatives in education, health, environmental conservation, and economic empowerment.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.75 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Reports Strong Profit Growth Amid Revenue Dip

Nickel Industries Limited reported a slight decrease in sales revenue for the first half of 2025, down 1.6% to US$829.7 million, but achieved a significant increase in profit after tax, up 119.3% to US$25.5 million. The company produced 66,450 tonnes of finished nickel metal and mined 11.6 million tonnes of ore at its Hengjaya Mine. The ENC project is ready for staged commissioning, indicating potential future growth and operational expansion.

The most recent analyst rating on (AU:NIC) stock is a Hold with a A$0.75 price target. To see the full list of analyst forecasts on Nickel Mines Ltd. stock, see the AU:NIC Stock Forecast page.

Nickel Industries Announces Change in Director’s Interest

Nickel Industries Limited has announced a change in the director’s interest, specifically concerning Norman Seckold. This update involves the alteration of his direct and indirect interests in the company’s securities, including shares held through various entities. Such changes in director’s interests are significant as they can impact stakeholder perceptions and the company’s governance structure.

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 Half Year Report with Webcast Discussion

Nickel Industries Limited has announced that it will release its Half Year Report on August 28, 2025. The report will be discussed in a webcast led by Managing Director Justin Werner and CFO Chris Shepherd, providing stakeholders with insights into the company’s financial performance and strategic direction.

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.