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Nickel Mines Ltd.
(Sydney:NIC)
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Rating:45Neutral
Price Target:
AU$0.81
â–Ľ(-3.10% Downside)
Action:Reiterated
Date:08/06/26
The score is weighed down primarily by weakening financial performance (margin compression and two consecutive years of net losses) alongside a technically weak price trend (below key moving averages and negative MACD). Positive free cash flow and a moderately leveraged balance sheet provide some support, but the negative P/E underscores that profitability is currently impaired.
Positive Factors
Integrated IMIP infrastructure
Long-term access to IMIP shared port, power and processing infrastructure lowers unit costs, improves reliability and eases market access. This structural integration supports durable operating efficiency versus standalone miners and strengthens competitive positioning in NPI supply chains.
Negative Factors
Revenue decline & margin compression
A multi-year drop in revenue combined with sharp gross margin compression reflects structurally weaker pricing or rising input costs. If these trends persist, they will erode operating leverage and core profitability, making recovery harder and limiting reinvestment into capacity or cost improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated IMIP infrastructure
Long-term access to IMIP shared port, power and processing infrastructure lowers unit costs, improves reliability and eases market access. This structural integration supports durable operating efficiency versus standalone miners and strengthens competitive positioning in NPI supply chains.
Read all positive factors
Nickel Mines Ltd. (NIC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.54B
Dividend YieldN/A
Average Volume (3M)8.20M
Price to Earnings (P/E)―
Beta (1Y)1.69
Revenue Growth-3.26%
EPS Growth66.55%
CountryAU
Employees40,000
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.01
Shares Outstanding4,341,936,000
10 Day Avg. Volume6,511,963
30 Day Avg. Volume8,196,956
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)1.18
Price to Sales (P/S)1.42
P/FCF Ratio27.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.27Price Target Upside51.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.04
Revenue Forecast (FY)AU$1.90B
Nickel Mines Ltd. Business Overview & Revenue Model
Company Description
Nickel Industries Limited, headquartered in Sydney, Australia, operates in Singapore and Indonesia, focusing on nickel ore extraction and nickel pig iron production. The company possesses an 80% ownership stake in the extensive 5,983-hectare Hengj...
How the Company Makes Money
Nickel Mines makes money mainly by earning its share of revenue from the sale of nickel pig iron produced by the RKEF operations in which it holds ownership interests. Customers (typically stainless-steel and related industrial metal producers) pu...
Nickel Mines Ltd. Earnings Call Summary
Earnings Call Date:Feb 22, 2026
(Q4-2025)
| Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
The call presented a mix of transitory operational pain and strong strategic and market tailwinds. Near-term results were negatively impacted by a government-imposed RKAB limit that halted mining for much of the quarter, producing a USD 14.9 million mine EBITDA loss and higher costs from third-party ore purchases. Offsetting these setbacks are several substantial positives: rapid mine ramp-up after reinstatement, strong commodity price movements (nickel and cobalt materially higher), robust HPAL/HNC margins (HNC EBITDA +32% q/q; EBITDA/t up ~29%), ENC nearing commissioning, a strategic 10% sale of ENC to Sphere Corp at a premium (USD 2.4B valuation), and a long-term fixed‑rate 25‑year PPA for a large solar + BESS project. Given the strength of underlying commodity prices, operational recovery, commissioning progress and strategic endorsements, the positives are judged to significantly outweigh the quarter’s temporary lowlights.Positive Updates
Safety and ESG Recognition
17.7 million man-hours without a lost time injury (LTI) and awarded the Excellence in Sustainability Leadership award by CNBC Indonesia, highlighting strong ESG and environmental management credentials.
Negative Updates
RKAB Limit and Mine Shutdown Impact
Government RKAB limit of 9 million wet metric tonnes caused most mining operations to halt for the majority of the quarter; this operational stoppage drove a material negative result at the mine division and required costly adjustments.
Read all updates
Q4-2025 Updates
Positive
Negative
Safety and ESG Recognition
17.7 million man-hours without a lost time injury (LTI) and awarded the Excellence in Sustainability Leadership award by CNBC Indonesia, highlighting strong ESG and environmental management credentials.
Read all positive updates
Company Guidance
Management guided that it remains confident of securing an increased RKAB to 19.0 million wet metric tonnes (currently restated from 9.0m to 10.5m on Dec 12), which management says would deliver 100% limonite self‑sufficiency for ENC and near‑100% for RKEF (nameplate self‑sufficiency ~11–12m t; company currently running ~25–30% above nameplate), noting it delivered ~1.0m t in the last 19 days and is tracking to ~1.4m t in January; ENC is in unit testing/wet commissioning targeting final commissioning end of this quarter; financials/guides included adjusted EBITDA from operations of USD 37.3m, a December‑quarter EBITDA loss of USD 14.9m (impacted by halted mining/standby costs), RKEF production slightly up (+1% operations) with slightly higher ore cash costs offset by lower electricity, HNC delivered USD 17.2m EBITDA (+32% q/q) and HNC EBITDA per tonne rose from ~$629/t to ~$812/t, MSP contract price +18% to $17,110/t, LME spot >$18,000/t (2025 average $15,162/t), NPI contract $11,100/t vs spot ~$13,200/t (~20% above Dec quarter avg), cobalt spot >$55,000/t (2025 avg ~ $39,967/t), solar PPA project (262 MWp + 80 MW BESS) reached financial close with a 25‑year fixed‑rate offtake, Sphere acquired 10% of ENC at a USD 2.4bn valuation, and development programmes (Sampala/ETL targeting ~6m tpa, haul roads 72% complete, ~18,000m drilling) remain on track.Nickel Mines Ltd. Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
60
Neutral
Cash Flow
47
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.71B | 1.74B | 1.88B | 1.22B | 468.19M |
| Gross Profit | 171.13M | 314.65M | 449.68M | 360.42M | 183.19M |
| EBITDA | 247.35M | 62.72M | 405.85M | 457.29M | 222.22M |
| Net Income | -59.05M | -168.59M | 121.60M | 158.98M | 99.98M |
Balance Sheet | |||||
| Total Assets | 4.27B | 3.90B | 4.07B | 2.67B | 1.77B |
| Cash, Cash Equivalents and Short-Term Investments | 357.00M | 210.95M | 774.97M | 144.24M | 99.93M |
| Total Debt | 1.20B | 1.05B | 845.02M | 559.29M | 237.46M |
| Total Liabilities | 1.81B | 1.35B | 1.16B | 857.98M | 472.71M |
| Stockholders Equity | 2.04B | 2.12B | 2.43B | 1.30B | 1.00B |
Cash Flow | |||||
| Free Cash Flow | 88.57M | 208.79M | 170.76M | 53.65M | 182.53M |
| Operating Cash Flow | 105.25M | 281.39M | 229.76M | 63.04M | 189.02M |
| Investing Cash Flow | -41.56M | -288.91M | -1.15B | -430.01M | -433.34M |
| Financing Cash Flow | 57.43M | -64.01M | 1.06B | 373.15M | 143.00M |
Nickel Mines Ltd. Technical Analysis
Negative
0.84
Price Trends
0.91
Negative
0.95
Negative
0.90
Negative
Market Momentum
-0.03
Negative
40.92
Neutral
68.19
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 0.84 is above the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.91, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 68.19 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | AU$69.75M | -15.16 | -13.31% | ― | ― | 25.21% | |
49 Neutral | AU$5.19B | -24.97 | -9.95% | ― | -36.60% | 80.62% | |
45 Neutral | AU$3.54B | -43.05 | -2.79% | ― | -3.26% | 66.55% | |
44 Neutral | AU$93.38M | -54.49 | -1.99% | ― | ― | 81.34% | |
43 Neutral | AU$66.54M | -3.33 | -16.67% | ― | ― | 42.00% | |
43 Neutral | AU$171.97M | 45.16 | 0.63% | 1.54% | -0.53% | -77.84% |
* Basic Materials Sector Average
AU:NIC
Nickel Mines Ltd.
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175.00%
Nickel Mines Ltd. Corporate Events
Nickel Industries boosts ESG credentials with safety, conservation and clean energy push
Jul 29, 2026
Nickel Industries highlighted strong safety performance for the June 2026 quarter, reporting a 12-month lost-time injury frequency rate of zero, a low total recordable injury frequency rate and 18 million safe man-hours worked. The Hengjaya Mine w...
Nickel Industries Posts Strong Quarter as Sampala Upgrade Powers HPAL Expansion
Jul 29, 2026
Nickel Industries reported US$120.5 million in adjusted EBITDA from operations for the June 2026 quarter, underpinned by a record US$45.7 million contribution from the Hengjaya Mine as Indonesian changes to nickel ore pricing boosted realised sale...
Nickel Industries lifts quarterly EBITDA on strong mining performance
Jul 24, 2026
Nickel Industries reported adjusted EBITDA of about US$120 million for the June quarter, up from US$86 million a year earlier but down from US$135.6 million in the March quarter, highlighting solid but moderating profitability. Strong mining perfo...
Nickel Industries Issues New Unquoted Performance Rights Under Incentive Plan
Jul 10, 2026
Nickel Industries Limited has issued 129,950 unquoted performance rights under its employee incentive scheme, effective July 10, 2026. The new securities, designated as NICAG performance rights, are not intended to be quoted on the ASX, indicating...
Nickel Industries Sets Webcast for June Quarter Activities Report
Jul 3, 2026
Nickel Industries Limited has announced it will release its June 2026 Quarter Activities Report on Wednesday, 29 July, reinforcing its practice of frequent operational disclosure in the nickel sector. The update is expected to provide detail on pr...
Nickel Industries updates market on directors’ performance rights and holdings
Jul 2, 2026
Nickel Industries Limited has reported changes in directors’ interests following the issuance of performance rights to Norman Seckold, Justin Werner and Chris Shepherd. The grants were approved by shareholders at the company’s recent a...
Nickel Industries Issues 4.45 Million Unquoted Performance Rights
Jun 30, 2026
Nickel Industries Limited has notified the market of the issue of 4,454,483 unquoted performance rights under its employee incentive scheme. The securities, designated as NICAG performance rights, were issued on June 30, 2026, and are not intended...
Nickel Industries to Brief Market on New EV Supply Chain Investments
Jun 24, 2026
Nickel Industries Limited announced that Managing Director Justin Werner will host a webcast to discuss newly disclosed strategic investments across the electric vehicle supply chain. The session, scheduled for 11:00 a.m. AEST on 24 June 2026, wil...
Nickel Industries Moves to Monetise Sampala and Deepen HPAL Integration
Jun 24, 2026
Nickel Industries Ltd. has outlined a strategic integration of its Sampala Project with high-pressure acid leach (HPAL) operations, targeting production of approximately 17,000 tonnes of nickel in mixed hydroxide precipitate for a total cash consi...
Nickel Industries to Take 17.5% Stake in Indonesian HPAL Project
Jun 23, 2026
Nickel Industries Limited will invest US$169 million for a 17.5% stake in the PT Teluk Metal Industry HPAL project in Indonesia’s Morowali Industrial Park, expanding its exposure to mixed hydroxide precipitate for EV batteries alongside a ma...
Nickel Industries lifts cash flows as ENC commissioning advances
Jun 16, 2026
Nickel Industries reported combined adjusted EBITDA of about US$80 million from operations in April and May 2026, with a weaker April due to mine downtime and maintenance followed by a strong rebound in May. The company also expects to release rou...
Nickel Industries Secures Strong Shareholder Backing at AGM
May 26, 2026
Nickel Industries Limited reported that all resolutions put to shareholders at its Annual General Meeting on 26 May 2026 were passed by poll. The resolutions included approvals of the remuneration report, re-elections of several directors, and gra...
Nickel Industries Sets Strict Parameters Around 2026 AGM Presentation Use
May 26, 2026
Nickel Industries Limited has released a presentation prepared for its May 2026 annual general meeting, outlining information intended for institutional recipients on a confidential basis. The company emphasises that the material is for informatio...
Nickel Industries Corrects AGM Agenda to Back Re‑election of Key Director
May 12, 2026
Nickel Industries Limited has issued a supplementary notice to its 2026 Annual General Meeting materials, correcting its director election resolutions by withdrawing the proposed re-election of Emma Hall, who is not required to stand this year, an...
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.