Nickel Industries (ASX:NIC) Managing Director Justin Werner used the company’s December 2025 quarterly results call to highlight safety and sustainability milestones, provide updates on production and earnings, and outline progress across its Indonesian nickel operations, including the ENC project and mining approvals.
Safety, ESG recognition, and a major solar power milestone
Werner said the group achieved 17.7 million man-hours worked without a safety incident, calling it “a tremendous achievement.” He also noted the company was awarded Excellence in Sustainability Leadership Indonesia, which he said recognized its ESG implementation and contributions to “sustainable nickel.”
Quarterly operating performance and pricing backdrop
Werner said the quarter was impacted by delays tied to permitting, describing “slight frustration” in meeting 1 million wet metric tons (as referenced in his remarks) and noting that the shortfall affected operations for a majority of the quarter.
He reported that RKEF nickel metal production increased 1% versus the prior period, but said EBITDA declined primarily due to higher costs. He attributed the cost pressure to being unable to supply the RKEFs for much of the quarter, which resulted in sourcing from third parties and lifted costs.
Werner said the company’s NPI pricing was a mixed factor during the period:
- He cited NPI contract pricing of about $11,100, broadly in line with the previous quarter.
- He said spot NPI pricing was around $13,200 at the time of the call.
- He described the start to the year as strong for nickel pricing and said it “bodes well” for the remainder of the year.
HNC performance, MHP contract pricing, and cobalt tailwinds
Werner said HNC continued to operate “well above” its benchmark and delivered $17.2 million in EBITDA, which he said was a 32% increase on the September quarter.
He also pointed to a lift in unit economics, saying HNC’s EBITDA per ton increased from $6,029 per ton in Q3 to more than $8,800 in the December quarter.
On realized prices, Werner said the MHP contract price was $17,110 per ton during the quarter and stated it was “over $18,000 a ton” at the time of the call. He attributed the improvement to higher nickel and cobalt pricing, adding that the average LME nickel price for 2025 was $15,000. For cobalt, he said spot prices were above $50,000 per ton, compared with an average for 2025 of about $39,967.
Hengjaya Mine restart and RKAB/AMDAL permitting impact
Werner said the Hengjaya Mine restarted operations on December 12 following the permitting disruptions and that the mine’s approved level had increased to 10.5 million tons. He said that in the last 19 days of the quarter the operation produced (as referenced in his comments) and that the team ramped quickly despite being down for “almost two and a half months.” Werner said January was tracking well and indicated the operation was trending strongly into the new quarter.
However, he said standby and mining costs weighed on results, producing a $9 million impact for the quarter. He also discussed the financial impact of the RKAB delays, saying results moved from $32.8 million in the third quarter to $14.9 million in the December quarter.
Werner called the approval of the AMDAL a “significant milestone” and said he was confident in achieving $8 million (as stated in his remarks) and in the company’s ability to increase from 9 million to 10.5 million.
During Q&A, Werner addressed investor questions on RKAB quotas and self-sufficiency. He said the company remained confident in its ability to achieve an environmental approval that supports 19 million tons and suggested that any industry-wide RKAB cuts were more likely to affect smaller producers. On the level required for self-sufficiency, he said 19 million would enable the group to be 100% self-sufficient for ENC and provide ore self-sufficiency for its eight RKEF lines at IMIP.
When asked whether self-sufficiency was based on nameplate or actual run rates, Werner said it was based on nameplate capacity, which he described as “about 11,” and said a 19 million-ton allocation would provide a “significant buffer,” enabling operation above nameplate.
ENC commissioning progress and sale of a 10% stake
Werner said the company was progressing commissioning work at the ENC project, including the start of wet commissioning in anticipation of final commissioning by the end of the quarter. He said installation of the crystallizer had been completed and integrated with the rest of the circuit, and that the refinery would ramp production once the HPAL smelter was operating.
He added that the company had begun purchasing sulfur and that initial mechanical tests had commenced across multiple systems including the counter-current decantation circuit, thickeners, precipitants, reagent storage tanks, and other components. He also said additional resources were allocated to complete a slurry pipeline to ENC and to return tailings to a dry facility.
Werner also announced the sale of 10% of the ENC project at an implied valuation of $2.4 billion, which he said was a premium to $2.3 (as referenced). The buyer, he said, was Sphere, described as a South Korean KOSDAQ-listed premium alloy and precision manufacturer serving the global aerospace industry and “one of only five global key vendors to SpaceX,” with a 10-year supply contract supporting rocket production. The transaction is expected to complete in Q1 2026.
Werner said the investment represented an entry point into aerospace and aeronautical markets that require high product quality and strict qualification standards, calling it an endorsement of quality and a pathway to additional North American aerospace end users.
Closing the call, Werner reiterated confidence around the higher RKAB level and ENC commissioning timing, and said the company would continue working closely with the government as it seeks further approvals.
About Nickel Industries (ASX:NIC)
Nickel Industries Limited engages in nickel ore mining, nickel pig iron, cobalt, and nickel matte production activities. It is also involved in the production of mixed hydroxide precipitate for use in the electric vehicle supply chain. 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 based in Sydney, Australia.
