Nickel Mines Ltd. (NIC) AI Stock Analysis

• Market Cap: AU$3.06B
• Dividend Yield: 4.2%
• Average Volume (3M): 7.23M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 2.09
• Revenue Growth: -6.64%
• EPS Growth: -209.78%
• Country: AU
• Employees: 40,000
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): -0.06
• Shares Outstanding: 4,339,936,000
• 10 Day Avg. Volume: 7,244,010
• 30 Day Avg. Volume: 7,231,453
• PEG Ratio: 0.46
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.72
• 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$1.00
• Price Target Upside: 38.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 62 Neutral
• Price Target: AU$0.50 ▼(-30.56%Downside)

The overall score of 62 reflects a company with technical strength and positive earnings call outlook, but tempered by financial challenges and valuation concerns. The company shows strong operational and safety performance, with strategic initiatives promising future growth, yet financial leverage and the impact of soft nickel prices remain as risks.

Nickel Mines Ltd. Business Overview & Revenue Model

Company Description

Nickel Mines Ltd. (NIC) is an Australian-based mining company primarily engaged in the exploration and production of nickel resources. The company has significant operations in Indonesia, focusing on the acquisition, construction, and operation of nickel processing plants. Nickel Mines Ltd. is known for its low-cost production capabilities and strategic partnerships in the region, playing a crucial role in the global supply chain of nickel, which is essential for stainless steel production and increasingly important for electric vehicle batteries.

How the Company Makes Money

Nickel Mines Ltd. generates revenue through the extraction, processing, and sale of nickel products. The company operates through joint ventures and partnerships, particularly in Indonesia, where it has access to rich nickel laterite deposits. Its revenue streams are mainly derived from selling processed nickel pig iron (NPI) to the stainless steel industry and other sectors requiring nickel. Additionally, Nickel Mines Ltd. benefits from its strategic alliances with major Chinese industrial companies, which provide expertise and financial backing, enhancing its production capacity and market reach. These partnerships and operational efficiencies enable the company to maintain a competitive edge in the global nickel market, thus contributing significantly to its earnings.

Nickel Mines Ltd. Financial Statement Overview

Summary

Nickel Mines Ltd. shows a mixed financial performance with strengths in asset base and free cash flow growth, but faces challenges in revenue growth, profitability, and increased financial leverage.

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: Positive
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 0.72 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.63, and below the 200-day MA of 0.76, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NIC.

Nickel Mines Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSL	69 Neutral	$9.84B	18.18	5.09%	2.67%	-5.64%	-33.77%
IGO	64 Neutral	$2.98B	1,418.92	-36.53%	12.87%	-28.50%	-532.61%
NIC	62 Neutral	AU$3.06B	17.84	-7.32%	4.20%	-6.64%	-209.78%
S32	58 Neutral	£12.77B	58.17	-3.53%	3.70%	-19.74%	―
Sector *	44 Neutral	C$958.62M	-6.68	-13.31%	2.80%	17.55%	-32.28%

Nickel Mines Ltd. Corporate Events

Nickel Industries Updates Share Registry Address

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

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.

Nickel Industries Achieves Safety Milestones and Sustainability Recognition

Nickel Industries Limited reported a low lost time injury frequency rate of 0.05 for the quarter ending March 2025, with no lost time injuries recorded during this period. The company also maintained a total recordable injury frequency rate of 1.48 and received a Green PROPER rating for the third consecutive year, underscoring its commitment to safety and environmental sustainability.

Nickel Industries Limited Releases 2024 Annual Report and AGM Notice

Nickel Industries Limited has released its Annual Report for the year ending December 31, 2024, and announced its Annual General Meeting scheduled for May 22, 2025. This release provides shareholders with insights into the company’s performance over the past year and outlines strategic directions, potentially impacting its market positioning and stakeholder interests.

Nickel Industries Reports Change in Substantial Holder Interests

Nickel Industries Limited has reported a change in the interests of its substantial holder, L1 Capital Pty Ltd and L1 Capital Strategic Equity Management Pty Ltd. The announcement details the changes in voting power and relevant interests, indicating a shift in the substantial holder’s stake in the company. This change could have implications for the company’s governance and shareholder dynamics, potentially affecting its strategic decisions and market perception.

Nickel Industries to Release Quarterly Report with Webcast

Nickel Industries Limited has announced that it will release its Quarterly Activities Report on April 29, 2025, with a webcast led by Managing Director Justin Werner to discuss the quarter’s activities and results. This announcement is significant as it provides stakeholders with insights into the company’s operational performance and strategic direction, potentially impacting its market positioning and investor relations.