Nickel Industries Limited · ASX:NIC
Nickel Industries — H1 2023 Earnings Presentation
17 slides from Nickel Industries's earnings presentation, Aug 31, 2023
Slide 1: Results Presentation 1H 2023
Results Presentation 1H 2023 A top 10 nickel producer strongly positioned to capture growing battery grade nickel demand 0
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Nickel Industries Limited (ABN 44 127 510 589) (‘NIC’). The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The in
Slide 3: 1H 2023 review
1H 2023 review 2 ▪ Sales revenue: US$932.3M ▪ 59,957 tonnes Ni production ▪ Mine production of >5.2 wmt ▪ Electric Vehicle Battery Supply Chain o >1.3M wmt saprolite Strategic Framework Agreement ▪ Gross profit: US$126.4M ▪ Attributable Ni production of o >3.8M wmt limonite 45,843 tonnes ▪ US$400M S
Slide 4: Safety - our most important metric
Safety - our most important metric RKEF operations ▪ For the 6 months to 30 June 2023, 5.46 million cumulative work hours without a “lost time injury” (‘LTI’) incident were achie ved across NIC’s RKEF operations Hengjaya Mine operations ▪ During 1H 2023 there were no LTIs recorded at the Hengjaya Mi
Slide 5: 1H 2023 - P&L summary
1H 2023 - P&L summary ▪ Record HY sales revenue of US$932.3M underpinned by All figures in US$M HY 2023 HY 2022 record HY production ▪ Profitability negatively impacted by materially higher costs and Sales revenue $932.3 $515.0 81.0% lower realised contract prices than pcp ▪ Declaration of a 1H 2023
Slide 6: Balance sheet – conservatively structured with significant flexibility for the future
Balance sheet – conservatively structured with significant flexibility for the future ▪ As at 30 June 2023: 30 June 31 December – Cash US$364.0M / Debt US$656.6M All figures in US$M 2023 2022 – Net debt US$292.6M Current Aassets $998.7 $632.5 ▪ In April 2023 the Company successfully completed: – iss
Slide 7: RKEF operations
RKEF operations EBITDA figures in US$M ▪ Record half year production of 59,957 tonnes EBITDA margins in US$/t 1H 2023 1H 2022 – record NIC attributable production of 45,843 Hengjaya Nickel production (Ni tonnes) 10,165 9,509 6.9% tonnes Ranger Nickel production (Ni tonnes) 9,641 9,758 (1.2%) – incre
Slide 8: Consistent track record of strong production growth
Consistent track record of strong production growth 7
Slide 9: Recovery in NPI prices in early 2H 2023
Recovery in NPI prices in early 2H 2023 ▪ Sluggish Chinese economic data since the end of COVID lockdown restrictions and fears of short-medium oversupply of 1H 2023 NPI weighed on Chinese NPI pricing during 1H, however … ▪ … prices appear to have bottomed and are now trading >US$1,600/t above recen
Slide 10: A record half year of production at Hengjaya Mine
A record half year of production at Hengjaya Mine Production summary March Quarter June Quarter Half Year Saprolite mined wmt 662,004 692,937 1,354,941 Limonite mined wmt 1,822,636 2,029,624 3,852,260 Nickel ore mined 2,484,640 2,722,561 5,207,201 Overburden mined BCM1 398,017 226,798 624,815 Strip
Slide 11: HM to IMIP haul road now complete
HM to IMIP haul road now complete ▪ In August 2023 the Company announced the completion of the Hengjaya Mine to IMIP haul road ▪ Haul road features a 70-metre double lane bridge with public road underpass near the entrance of the IMIP ▪ Haulage tenders currently being finalised with first trucking o
Slide 12: Siduarsi Project update
Siduarsi Project update ▪ During 1H 2023 the Company drilled 2,074 exploration holes totalling 31,127 metres ▪ Detailed geological modelling continues to be updated with over 29,854 assays now received ▪ Geotechnical drilling has also been completed from 10 points with a total number of 51 samples.
Slide 13: Corporate … recap of a busy first half
Corporate … recap of a busy first half Electric Vehicle Battery Supply Chain Strategic Framework Agreement ▪ Key components: – a 10% interest in PT Huayue Nickel Cobalt (‘HNC’) HPAL plant from a Tsingshan-affiliated company for US$270M an additional 10% interest in Oracle Nickel for US$75M in cash (
Slide 14: Corporate … recap of busy 1H
Corporate … recap of busy 1H 2022 Sustainability Report ▪ Released our second Sustainability Report ▪ Recipient of seven trophies at the Environmental and Social Innovation Awards ▪ Recipient of a silver award at the Asia Sustainability Reporting Rating ▪ Awarded a “Green Proper” rating for the Heng
Slide 15: Corporate … recap of busy 1H
Corporate … recap of busy 1H Conditional share placement and execution of collaboration agreement with United Tractors ▪ Conditional share placement to United Tractors (‘UT’) for A$943M (~US$628M) ▪ Issue price of $1.10 per share represented a 27.2% premium to the last traded price of A$0.87 on 8 Ju
Slide 16: Corporate … recap of busy 1H
Corporate … recap of busy 1H Excelsior Nickel Cobalt Project update (cont’d) ▪ Investment in the ENC Project is subject to the following: – completion of the feasibility study for the ENC Project; – shareholder approval for the investment in the ENC Project; and – execution of definitive ENC Project
Slide 17: THANK YOU
THANK YOU NICKEL INDUSTRIES