Nickel Industries Limited · ASX:NIC
Nickel Industries — Q2 2022 Earnings Presentation
18 slides from Nickel Industries's earnings presentation, Jul 28, 2022
Slide 1: Quarterly Activities Report, quarter ended 30 June 2022
30 SEPTEMBE QUARTERLY ACTIVITIES REPORT For the quarter ended 30 June 2022 Record EBITDA from operations of US$103.2M as Angel Nickel production ACN 127 510 589 ramps up and Hengjaya Mine benefits from higher realised ore prices ASX Release: 28 July 2022 Record RKEF quarterly production of 15,567
Slide 2: RKEF operations
JUNE 2022 QUARTERLY ACTIVITIES REPORT The Directors are pleased to present the June 2022 Quarterly Activities Report for Nickel Industries Limited (‘Nickel Industries’ or ‘the Company’) and its controlled entities (‘the Group’). The Group’s principal operations, located in Indonesia, are the Hengjay
Slide 3: RKEF production by project
JUNE 2022 QUARTERLY ACTIVITIES REPORT Nickel Industries attributable nickel production was 12,543 tonnes of nickel metal, an increase of 39.4% on the March quarter production. June March RKEF OPERATIONS HNI RNI ANI quarter quarter NPI production tonnes 34,081 34,990 45,035 114,106 81,599 NPI grade %
Slide 4: Revenue and contract pricing
JUNE 2022 QUARTERLY ACTIVITIES REPORT Revenue and contract pricing During the June quarter, the combined Hengjaya Nickel, Ranger Nickel and Angel Nickel projects recorded sales (on a 100% basis) of US$315.4M, up 61.4% from US$195.4M in the March quarter. This record RKEF revenue was generated on rec
Slide 5: Operating costs
JUNE 2022 QUARTERLY ACTIVITIES REPORT Operating costs Operating cash costs for the June quarter at Hengjaya Nickel (US$14,597/t Ni) and Ranger Nickel (US$14,338/t Ni) were 21.4% and 20.3% higher respectively compared to the March quarter. These cost increases were a function of: (i) higher commodity
Slide 6: EBITDA and underlying cash generation
JUNE 2022 QUARTERLY ACTIVITIES REPORT EBITDA and underlying cash generation The Company’s RKEF operations delivered a record EBITDA of US$84.9M during the June quarter, up 16.5% from US$72.8M in the March quarter. This comprised US$23.2M, US$25.0M and US$36.6M from HNI, RNI and ANI, respectively 1.
Slide 7: Hengjaya Mine operations
JUNE 2022 QUARTERLY ACTIVITIES REPORT Hengjaya Mine operations Hengjaya Mine (80% interest held by Nickel Industries) The Hengjaya Mine achieved a record EBITDA of US$18.4M in the June quarter. This exceptionally strong result was a function of significantly higher realised prices for nickel ore sal
Slide 8: Jetty operations at 3mtpa capacity
JUNE 2022 QUARTERLY ACTIVITIES REPORT Jetty operations at 3mtpa capacity The mine pit operations, technical support services, haul road and jetty systems are now operating at an annualised capacity of 3 million wmt of saprolite. The final 6km section of the haul road to IMIP is in the final stages o
Slide 9: Exploration and Safety, Environment and Community
JUNE 2022 QUARTERLY ACTIVITIES REPORT During the quarter 145 kms of Ultra Ground penetrating radar (‘UGPR’) was concluded in the IPPK3 area of the Hengjaya Mine IUP. The UGPR interpretation was used to identify very promising priority saprolite targets and drill planning. UGPR interpretation IPPKH3
Slide 10: Community
JUNE 2022 QUARTERLY ACTIVITIES REPORT Hengjaya Mine senior staff passing the advanced supervisory training (POP) program Community Nickel Industries is strongly committed to contributing to both human and infrastructure development around the Hengjaya Mine and local communities and as such is active
Slide 11: Environment and Sustainability
JUNE 2022 QUARTERLY ACTIVITIES REPORT Environment and Sustainability Nickel Industries is pleased with the May 2022 signing of a binding term sheet with Quantum Power Asia Pte Ltd (‘Quantum’) for the implementation of a 220 MWp solar project in our mining area. The Quantum’s 220 MWp solar project wi
Slide 12: EMS and OHS management system certifications
JUNE 2022 QUARTERLY ACTIVITIES REPORT EMS and OHS management system certifications at HNI and RNI In June, our employees joined with students and local communities to perform a clean-up and raise awareness of the importance of the ocean in our lives. Besides its function as a habitat for sea creatur
Slide 13: Finance: Balance sheet
JUNE 2022 QUARTERLY ACTIVITIES REPORT Finance 5 Balance sheet At 30 June 2022, the Group held: Cash and cash equivalents: US$97.8M (31 March 2022 - US$129.7M); Trade receivables: US$161.9M (31 March 2022 - US$159.8M); and Inventories: US$192.9M (31 March 2022 - US$142.3M). Cash and cash equiva
Slide 14: Cashflow and Expenditures
JUNE 2022 QUARTERLY ACTIVITIES REPORT Cashflow The following cashflow waterfall provides a reconciliation of cash movements for the Group during the June 2022 quarter. Underlying cash generation from operations (defined as EBITDA from operations less capex) was US$102.6M. Following the Company’s inc
Slide 15: Corporate
JUNE 2022 QUARTERLY ACTIVITIES REPORT Corporate Change of Company name Following shareholder approval at the Company’s AGM on 31 May 2022, the Company’s name was changed from Nickel Mines Limited to Nickel Industries Limited. While the Company’s origins are that of an explorer and miner of nickel or
Slide 16: Consolidated RKEF production profile
JUNE 2022 QUARTERLY ACTIVITIES REPORT 140,000 12 RKEF lines Ni Eq production (tpa)(9) 120,000 32,010 100,000 8 RKEF lines 80,000 21,210 60,000 4 RKEF lines 102,000 40,000 10,410 66,000 20,000 30,000 - (10) FY 2021 (HNI & RNI) Incl. ANI Incl. ONI (10) (7) (8) Nameplate Production above nameplate Note
Slide 17: About Siduarsi
JUNE 2022 QUARTERLY ACTIVITIES REPORT About Siduarsi Siduarsi is a 6th generation Contract of Work (‘CoW’) held by PT Iriana Mutiara Mining (‘IMM’) and is one of only four active nickel contract of works (‘CoWs’) in Indonesia; the other three being VALE-INCO (which hosts its Soroako nickel matte pro
Slide 18: Quarterly progress
JUNE 2022 QUARTERLY ACTIVITIES REPORT QUARTERLY PROGRESS Commenting on the June quarter’s activities, Managing Director Justin Werner said: “We are extremely pleased to report another quarter of record operational and financial performance across our RKEF and mining operations, despite a challenging