Nickel Industries reported a 46% year-over-year increase in adjusted EBITDA to $247.6 million for the first half of 2026, driven by higher nickel prices and operational efficiency. The company’s net profit after tax totaled $74 million, while operating cash flow reached $77.5 million.
Revenue from the Rotary Kiln Electric Furnace (RKEF) segment surged 87% to $146.7 million, supported by an average nickel pig iron price of $13,784 per ton, up 21% from the prior year. The London Metal Exchange nickel price averaged $17,700 in the first half, a 15% increase. RKEF EBITDA per ton margin doubled to $2,500, though cash costs rose 13% to $11,480 per ton due to higher benchmark saprolite ore pricing in Indonesia.
The Hengjaya Mine contributed $73.4 million in EBITDA, a 4% increase, with ore sales averaging $28 to $31.30 per ton. The High-Pressure Acid Leach (HPAL) project at Excelsior Nickel Cobalt (ENC) began commissioning in May, producing its first mixed hydroxide precipitate in July and first cathode in August. Two autoclaves are operating at approximately 50% capacity, with full nameplate capacity targeted by year-end 2026. Water availability remains a constraint for the third autoclave during the dry season.
Nickel Industries maintained a net debt position of $980 million to $982 million as of June 30, with a leverage ratio of 2.3 times, below its 3.5 times covenant ceiling. The company’s cash balance declined to $260 million from $323 million at the start of the year. Capital expenditures totaled $137 million, including $46 million for the final Excelsior Nickel Cobalt payment and $26 million for Sampala development.
The Sampala project’s JORC resource upgrade exceeded 1 billion wet metric tons, containing 8 million tons of nickel. A share swap secured an 18% interest in Sampala’s ANN and ETL IUPs, with a 36% stake in the CNE HPAL project valued above $1.3 billion. Production at Sampala is slated for 2027, with the TMI and CNE projects expected to add 7,000 and 10,000 tonnes of attributable nickel annually, respectively.
Managing Director Justin Werner highlighted the company’s low-cost position, stating, “We're positioned at the very bottom end of the cost curve through our scale and integration.” He added that the HPAL project would drive the next phase of growth, with a clear pathway to $1 billion in EBITDA within two to three years.
