Nickel Mines Ltd. (NIC) AI Stock Analysis

• Market Cap: AU$3.28B
• Dividend Yield: 5.3%
• Average Volume (3M): 8.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• 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: 6,511,963
• 30 Day Avg. Volume: 8,196,956
• PEG Ratio: 0.07
• 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$1.10
• Price Target Upside: 44.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: AU$0.50 ▼(-34.21% Downside)

Nickel Mines Ltd. has a moderate overall score driven by a mixed financial performance and valuation concerns. While technical indicators show some positive trends, the company's financial challenges and negative P/E ratio weigh heavily on the score. The earnings call provided some optimism with operational achievements, but immediate cash flow and production issues remain significant.

Positive Factors

Strong Safety and Sustainability Performance

Nickel Mines Ltd.'s commitment to safety and sustainability enhances its reputation and operational reliability, which is crucial for long-term success and compliance with industry standards.

Record Ore Sales from Hengjaya Mine

The record ore sales and increased EBITDA from the Hengjaya Mine indicate strong operational performance and market demand, supporting long-term revenue growth and profitability.

Positive Outlook for Sampala Project

The advancement of the Sampala project suggests potential for significant resource expansion, which can drive future growth and enhance Nickel Mines' market position.

Negative Factors

Decrease in RKEF Nickel Production

The decrease in RKEF nickel production highlights operational challenges that could impact short-term revenue and profitability, necessitating improvements in production efficiency.

Delays in ENC Cathode Plant Commissioning

The delay in the ENC cathode plant commissioning could hinder Nickel Mines' ability to meet production targets and capitalize on market opportunities in the near term.

Cash Flow Challenges

Cash flow challenges indicate potential liquidity issues, which could constrain Nickel Mines' ability to invest in growth initiatives and manage financial obligations effectively.

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 generates revenue primarily through the sale of nickel pig iron (NPI) and ferronickel, which are used in the production of stainless steel. The company's revenue model is driven by the global demand for nickel, especially from the EV market, where nickel is a key component in lithium-ion batteries. Nickel Mines benefits from long-term off-take agreements with major customers, ensuring a steady demand for its products. Additionally, the company's strategic partnerships with established players in the mining and metals industry enhance its market position and operational efficiencies. Fluctuations in nickel prices on global commodity markets also significantly impact the company's earnings, making it essential for Nickel Mines to maintain competitive production costs and efficient operations.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.76B	1.74B	2.76B	1.22B	645.94M	523.49M
Gross Profit	273.29M	314.65M	659.78M	360.42M	252.73M	201.93M
EBITDA	55.67M	62.72M	405.85M	457.29M	306.58M	196.62M
Net Income	-162.05M	-168.59M	121.60M	158.98M	137.94M	160.67M
Balance Sheet
Total Assets	3.84B	3.90B	4.07B	2.67B	1.77B	1.23B
Cash, Cash Equivalents and Short-Term Investments	112.09M	210.95M	774.97M	144.24M	137.86M	351.45M
Total Debt	1.04B	1.05B	845.02M	824.73M	327.61M	45.00M
Total Liabilities	1.30B	1.35B	1.16B	857.98M	472.71M	148.45M
Stockholders Equity	2.11B	2.12B	2.43B	1.30B	1.00B	940.06M
Cash Flow
Free Cash Flow	89.43M	208.79M	170.76M	-120.42M	179.15M	199.44M
Operating Cash Flow	132.39M	281.39M	229.76M	63.04M	189.02M	149.95M
Investing Cash Flow	-429.33M	-288.91M	-1.15B	-430.01M	-597.86M	-184.41M
Financing Cash Flow	74.05M	-64.01M	1.06B	373.15M	197.29M	333.63M

Nickel Mines Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.76 is above the 20-day moving average (MA) of 0.74, above the 50-day MA of 0.73, and above the 200-day MA of 0.69, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.44 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
ILU	68 Neutral	$2.33B	12.28	7.84%	1.10%	-4.84%	-30.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PLS	59 Neutral	$12.66B	―	-5.63%	―	-38.69%	-174.12%
MIN	58 Neutral	$10.33B	-11.38	-26.55%	―	-15.27%	-817.26%
IGO	56 Neutral	AU$5.81B	-6.09	-35.65%	―	-37.23%	-32433.33%
NIC	52 Neutral	AU$3.28B	-13.20	-7.26%	5.30%	-2.30%	-234.27%
IPX	38 Underperform	AU$1.69B	-27.20	-50.19%	―	―	-20.85%

Nickel Mines Ltd. Corporate Events

Nickel Industries Achieves Safety Milestone and Earns Sustainability Awards

Nickel Industries Limited reported a perfect safety record for the quarter ending September 2025, with no lost time injuries recorded across 18.5 million safe man hours. The company was recognized for its sustainability efforts, receiving the Gold award for Biodiversity Management at the 2025 Indonesia Sustainable Responsible Awards and national recognition at the 2025 Innovation Technology for Social and Environmental Awards.

Nickel Mines Ltd. Reports Strong Q3 2025 Performance Amid Strategic Financial Moves

Nickel Mines Ltd. reported a strong third quarter in 2025, with significant EBITDA growth in its RKEF and HPAL operations, despite a temporary dip in sales from its Hengjaya Mine. The company issued US$800 million in senior unsecured notes to refinance existing debt, reducing costs and extending maturities. Nickel Mines also achieved safety milestones and received recognition for biodiversity management, highlighting its commitment to sustainable practices. The company’s strategic moves, including deferring acquisition payments and progressing towards increased production quotas, position it well for future growth.

Nickel Industries to Unveil Quarterly Activities Report

Nickel Industries Limited has announced that it will release its Quarterly Activities Report on October 28, 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 influence its operational strategies and stakeholder interests.

Nickel Industries Completes Tender Offer, Strengthens Growth Position

Nickel Industries Limited has successfully completed a tender offer for its US$400 million senior unsecured notes, accepting tenders for an aggregate principal amount of US$354,519,000. This move, along with the issuance of US$800 million in new senior unsecured notes, strengthens the company’s financial position and supports its growth trajectory in the nickel industry.

Nickel Industries Secures $800 Million in Bond Issuance to Strengthen Financial Position

Nickel Industries Limited has successfully issued US$800 million in senior unsecured notes with a 9% coupon rate, maturing in 2030. This strategic financial move extends the company’s debt maturity profile and reduces its annual note amortization by US$88 million, reflecting confidence from global investors and enhancing its international market recognition.

Nickel Industries Plans New Note Issuance to Extend Debt Maturity

Nickel Industries Limited has announced plans to issue new Senior Unsecured Notes, subject to market conditions, while concurrently tendering for its existing 11.250% Senior Unsecured Notes maturing in October 2028. This strategic move aims to extend the company’s debt maturity profile, with purchased notes being canceled to streamline financial operations. The issuance will be conducted outside the United States under Regulation S and within the United States to qualified institutional buyers under Rule 144A, reflecting the company’s efforts to optimize its financial structure and maintain a strong market position.

Nickel Industries Defers ENC Acquisition Payments, Maintains Commissioning Timeline

Nickel Industries Limited has reached an agreement with its largest shareholder, Shanghai Decent, to defer two remaining payments for the Excelsior Nickel Cobalt acquisition by six months. This deferral does not affect the timeline for ENC commissioning, which remains on track for later this year, and reflects prudent balance sheet management and a strong partnership with Shanghai Decent.