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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:51Neutral
Price Target:
AU$0.50
▼(-31.51% Downside)
Nickel Mines Ltd. faces significant financial challenges, including declining profitability and increased leverage, which weigh heavily on the overall score. Technical indicators suggest bearish momentum, while valuation metrics highlight profitability concerns. The positive outlook from the earnings call provides some optimism, but the overall risk profile remains high.

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:Feb 23, 2025
(Q4-2024)
|
% Change Since: -6.41%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong operational performance and significant achievements in safety, sustainability, and production records. However, challenges included lower reported EBITDA due to FX losses, quota limitations affecting sales, and the impact of soft nickel prices. Despite these challenges, the outlook for 2025 is positive with key projects on track and fully funded.
Q4-2024 Updates
Positive Updates
Safety and Sustainability Achievements
Nickel Industries Limited recorded 17.4 million man hours with only two LTIs in 2024. LTIFR and TRIFR were well below the world steel average. The company was shortlisted for a Green PROPER rating for the third consecutive year and targeting a Gold rating. It achieved the highest MSCI rating of any Indonesian metals and mining company, with an S&P rating increase from seven in 2021 to 37 in 2024.
Record Production and Operational Performance
The company delivered US$72.4 million in operational revenue in the December quarter. Record quarterly mining of over 7 million tonnes and a record month in November with 1.3 million tonnes sold. ONI RKEF operations achieved a record of 12,362 tonnes of nickel in MPI, contributing to total quarterly production of 32,784 tonnes, a 7% increase from the previous quarter.
Strong Performance from Hengjaya Mine and Exploration Success
The Hengjaya Mine delivered strong EBITDA figures, with US$35.6 million in the December quarter. The Sampala Project showed promising exploration results with significant nickel and cobalt grades, indicating a potential for over 1 billion wet metric tonnes of ore.
Positive Outlook for 2025
Encouraging prospects for 2025 with the ENC HPAL commissioning expected in the second half, potential increase in Hengjaya Mine RKAB from 9 million to 19 million tonnes, and the development of the Sampala Project, all of which are fully funded.
Negative Updates
Lower Reported EBITDA
Reported EBITDA from RKEF operations was significantly lower at US$22.1 million compared to US$60 million in the September quarter. The decline was attributed to a US$20 million FX loss in the December quarter.
Challenges with RKAB Quota and Delayed Ore Sales
Reached RKAB quota of 9 million tonnes early in December, limiting ore sales and resulting in an US$8.5 million loss in December. The quota increase to 19 million tonnes is expected in the second half of 2025.
Soft Nickel Price Impact
The company operated against a backdrop of continued soft nickel prices throughout 2024, affecting overall revenue and profitability.
Company Guidance
During the Nickel Industries Limited December 2024 quarterly results call, Managing Director Justin Werner highlighted several key performance metrics and strategic initiatives. The company worked 17.4 million man hours in 2024, recording only two Lost Time Injuries (LTIs), which contributed to an LTIFR of 0.11 and TRIFR of 1.43, both well below the world steel average. Financially, the quarter saw operations deliver US$72.4 million, with a record US$14.7 million from a 10% interest in HNC, HPAL. Total nickel production in MPI reached 32,784 tonnes, a 7% increase from the previous quarter. While reported EBITDA from RKEF operations was US$22.1 million, adjusting for foreign exchange impacts revealed an underlying EBITDA of US$42 million, 17.5% higher than the previous quarter. Mining operations achieved a record 7 million tonnes for the quarter, with November alone delivering US$27 million in EBITDA. Despite challenges, including soft nickel prices and reaching the RKAB quota, the company remains optimistic about 2025, targeting a significant increase in EBITDA with several projects and initiatives, such as ENC, HPAL commissioning and the development of the Sampala Project, which is expected to exceed 1 billion wet metric tonnes of ore.

Nickel Mines Ltd. Financial Statement Overview

Summary
Nickel Mines Ltd. displays a mixed financial picture, with challenges in revenue growth and profitability. Despite a solid asset base and some positive trends in free cash flow, increased financial leverage and declining operating cash flow are potential 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
Neutral
Last Price0.73
Price Trends
50DMA
0.73
Positive
100DMA
0.66
Positive
200DMA
0.74
Negative
Market Momentum
MACD
<0.01
Positive
RSI
46.13
Neutral
STOCH
17.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NIC, the sentiment is Neutral. The current price of 0.73 is below the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.73, and below the 200-day MA of 0.74, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 17.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:NIC.

Nickel Mines Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
AU$2.48B10.6910.39%1.39%-9.35%-32.77%
64
Neutral
$3.55B1,418.92-36.53%7.82%-28.50%-532.61%
58
Neutral
AU$6.47B50.78-33.95%4.54%2.22%-411.10%
51
Neutral
$5.49B23.42-1.04%-65.07%-102.37%
51
Neutral
AU$3.17B17.84-7.32%5.48%-6.64%-209.78%
44
Neutral
C$864.81M-6.74-14.91%2.77%16.77%-26.72%
38
Underperform
AU$2.00B-38.95%-16.77%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NIC
Nickel Mines Ltd.
0.74
0.00
0.00%
AU:ILU
Iluka Resources Limited
6.01
0.37
6.58%
AU:MIN
Mineral Resources Limited
33.98
-17.72
-34.27%
AU:PLS
Pilbara Minerals
1.77
-1.30
-42.35%
AU:IGO
IGO
5.00
0.12
2.35%
AU:IPX
Iperionx Limited
5.69
3.63
176.21%

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 06, 2025