Nickel Industries Limited · ASX:NIC
Nickel Industries — H1 2024 Earnings Presentation
13 slides from Nickel Industries's earnings presentation, Aug 30, 2024
Slide 1: Half Year Results Presentation
Nickel Industries Limited (ASX:NIC) Half Year Results Presentation For the period ended 30 June 2024
Slide 2: Leadership role in responsible and sustainable mining
Nickel Industries playing a leadership role in responsible and sustainable mining 1 Safety Current Ratings and awards Green PROPER rating Hengjaya Mine Highest MSCI ESG rating for an Indonesian-based ▪ 13.4 million work hours registered since the last reported MSCI Metals and Mining company lost tim
Slide 3: University scholarship program
University scholarship program ▪ Establishment of University scholarship program in partnership with Hasanuddin University as part of the Company’s ongoing social initiatives within the local communities in which it operates ▪ Scholarship program to provide full financial support to 10 local indigen
Slide 4: 1H 2024 review
1H 2024 review 4 ▪ Sales revenue: US$843.3M ▪ 63,814 tonnes Ni in NPI/matte ▪ Mine production of >6.0 wmt ▪ Increased equity interest in ENC – >1.9M wmt saprolite HPAL Project to 27.5% ▪ Gross profit: US$96.3M ▪ 4,117 tonnes Ni in MHP – >4.1M wmt limonite (increased to 44% in July 24) (NIC’s 10% att
Slide 5: Key P&L metrics
Key P&L metrics ▪ Solid 1H result given current nickel price environment where low US$M 1H 2023 1H 2024 nickel prices (<US$17,000/t) saw a material percentage of the global cost curve (deep into 2nd quartile) operating at a loss Sales revenue $932.3 $843.3 (9.5%) ▪ 1H production and profitability ac
Slide 6: EBITDA to Profit reconciliation
EBITDA to Profit reconciliation US$M 1H 2023 1H 2024 Reported group EBITDA $141.8 $131.7 - Interest expense ($26.0) ($36.9) - Depreciation & amortisation ($50.6) ($63.9) - Withholding tax ($1.8) ($4.0) + Interest income $2.7 $9.3 Profit before tax $66.1 $36.2 - Income tax ($17.0) ($22.2) Profit afte
Slide 7: RKEF and HPAL operations
RKEF and HPAL operations RKEF production 1H 2023 1H 2024 HPAL production 1H 2023 1H 2024 Nickel in NPI (tonnes) 49,792 62,071 +24.7% Nickel in MHP (tonnes) n/a 41,172 n/a Nickel in matte (tonnes) 10,165 1,743 (82.8%) Cobalt in MHP (tonnes) n/a 3,669 n/a Nickel production (tonnes) 59,957 63,814 +6.4%
Slide 8: Maintenance of conservative balance sheet
Maintenance of conservative balance sheet US$M 31 December 2023 30 June 2024 ▪ As at 30 June 2024: – Debt US$753.8M – Cash US$351.5M Current Assets $1,344.7 $893.3 – Net debt US$402.3M ▪ Successful syndication of US$400M BNI loan facilities to an additional 8 banks comprising a mix of Asian, Europea
Slide 9: Hengjaya Mine - solid production despite operational challenges
Hengjaya Mine - solid production despite operational challenges Production 1H 2023 1H 2024 summary Saprolite mined wmt 1,354,941 1,906,190 +40.7% Limonite mined wmt 3,852,260 4,177,937 +8.5% Nickel ore mined wmt 5,207,201 6,084,127 +16.8% Overburden mined BCM1 624,815 755,582 +20.9% Strip ratio2 BCM
Slide 10: ENC construction progress
ENC construction progress ▪ During 1H and July 24, the Company completed the acquisition of an additional 30.25% equity interest in the Project (increasing to 44%) via cash payments of US$316.3M and US$379.5M, with the latter to assist the acceleration of the construction and commissioning of the ni
Slide 11: Corporate – 1H recap
Corporate – 1H recap Trial sales of nickel cathode ▪ Company commenced delivery of 200 metric tonnes of nickel cathode under a trial sales contract to a leading Western space and aeronautical company utilising cathode sourced from Tsingshan’s recently commissioned nickel cathode plant within the IMI
Slide 12: Corporate – 1H recap
Corporate – 1H recap US$250 term loan facility executed ▪ US$250M, 5-year term loan facility jointly provided by tier-1 banks BNI and DBS Bank Ltd ▪ Facility established to support the remaining funding requirements for the Company’s acquisition of a 55% equity interest in ENC – replaces cash follow
Slide 13: Nickel Industries Limited (ASX:NIC)
Nickel Industries Limited (ASX:NIC) For more information, please contact: Justin Werner Managing Director jwerner@nickelmines.com.au +61 2 9300 3311 Cameron Peacock Investor Relations and Business Development cpeacock@nickelindustries.com +61 439 908 732 www.nickelindustries.com