Nickel Industries Limited · ASX:NIC
Nickel Industries — Q1 2023 Earnings Presentation
23 slides from Nickel Industries's earnings presentation, Apr 27, 2023
Slide 1: Quarterly Activities Report, quarter ended 31 March 2023
30 SEPTEMBE QUARTERLY ACTIVITIES REPORT For the quarter ended 31 March 2023 Record quarterly EBITDA from operations of US$113.2M as nickel ACN 127 510 589 production continues to increase with Oracle ramp-up ASX release: 27 April 2023 RKEF operations ASX: NIC Record RKEF quarterly production of 26
Slide 2: March 2023 Quarterly Activities Report
MARCH 2023 QUARTERLY ACTIVITIES REPORT The Directors are pleased to present the March 2023 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: Indust
Slide 3: HPAL guarantee, haul road and Siduarsi drilling commentary
MARCH 2023 QUARTERLY ACTIVITIES REPORT HPAL not just in Indonesia but globally with a capex, timeframe and nameplate guarantee – given the numerous recently announced capex blow outs across the battery metals complex, we see the guarantee as extremely valuable and once again reflective of our larges
Slide 4: RKEF operations
MARCH 2023 QUARTERLY ACTIVITIES REPORT RKEF operations Key reporting metrics PRODUCTION HNI RNI ANI ONI Total NPI production tonnes - 37,074 80,909 51,905 169,888 NPI grade % - 12.8 15.3 11.5 13.9 Nickel in NPI tonnes - 4,750 12,382 5,206 22,338 - December quarter tonnes - 5,154 12,428 747 18,329 HG
Slide 5: Commentary on RKEF operations
MARCH 2023 QUARTERLY ACTIVITIES REPORT Commentary on RKEF operations Production During the March quarter the Company’s RKEF operations produced a record 26,665 tonnes of nickel metal, an increase of 15.6% from 23,072 tonnes produced in the December quarter. 22,338 tonnes were produced as nickel in N
Slide 6: Revenue and contract pricing
MARCH 2023 QUARTERLY ACTIVITIES REPORT Revenue and contract pricing During the quarter, the Hengjaya Nickel, Ranger Nickel, Angel Nickel and Oracle Nickel projects recorded combined sales (on a 100% basis) of US$487.9M, an increase of 31.4% from US$371.2M in the December quarter. This record RKEF re
Slide 7: HG matte sales and pricing
MARCH 2023 QUARTERLY ACTIVITIES REPORT The March quarter represented the Company’s second quarter of HG matte sales from Hengjaya Nickel. Production weighted average pricing across the quarter was US$21,858/t, up 1.4% from US$21,555/t achieved in the December quarter, however, in line with falling L
Slide 8: Matte production
MARCH 2023 QUARTERLY ACTIVITIES REPORT Matte production Operating cash costs for the March quarter at Hengjaya Nickel (US$16,814/t) were 7.4% higher than the December quarter, primarily as a result of using higher cost stockpiled ore, higher sulphur costs and increased processing costs (tolling char
Slide 9: EBITDA and cash generation
MARCH 2023 QUARTERLY ACTIVITIES REPORT EBITDA and cash generation The Company’s RKEF operations delivered EBITDA of US$100.2M during the March quarter, an increase of 11.3% from US$90.0M in the December quarter. This comprised EBITDA of US$30.1M from Hengjaya Nickel, US$7.4M from Ranger Nickel, US$6
Slide 10: Mining operations
MARCH 2023 QUARTERLY ACTIVITIES REPORT Mining operations Hengjaya Mine (80% interest held by Nickel Industries) During the March quarter, the Hengjaya Mine delivered mine ore production of 2,484,640 wet metric tonnes of ore (‘wmt’), down 8.2% from 2,707,858 wmt in the December quarter. EBITDA decrea
Slide 11: Haul road
MARCH 2023 QUARTERLY ACTIVITIES REPORT Mine operations at the Central pits, including limonite stockpiles. Haul road The haul road construction has progressed well in all areas. The completion of the haul road and associated bridge (70 metre span) is currently expected in the September 2023 quarter.
Slide 12: Abutments joining haul road to bridge and bridge construction
MARCH 2023 QUARTERLY ACTIVITIES REPORT Abutments joining haul road to bridge and bridge construction Haul road segment to IMIP river to IMIP is 95% complete 12
Slide 13: Resource Drilling
MARCH 2023 QUARTERLY ACTIVITIES REPORT Resource Drilling Exploration drilling is continuing at IPPKH 3 (South area) and IPPKH 2 (Central East area), currently focusing on the required infill drilling to further update and refine mine plans, schedules and production sequences to successfully deliver
Slide 14: Safety, Environment and Community
MARCH 2023 QUARTERLY ACTIVITIES REPORT Safety, Environment and Community Safety During the March quarter there were no lost time injuries (‘LTI’) recorded at the mine, with over 5.9 million work hours registered since the last reported LTI in November 2021. This gives the Hengjaya Mine operations a
Slide 15: PROPER Awarding Ceremony in February 2023
MARCH 2023 QUARTERLY ACTIVITIES REPORT PROPER Awarding Ceremony in February 2023 Another tremendous achievement was realised by the Hengjaya Mine, which was the awarding of a ‘Green’ PROPER rating from the Indonesian Environmental and Forestry Authority. The Hengjaya Mine was the only mining company
Slide 16: Hengjaya Mine watershed rehabilitation
MARCH 2023 QUARTERLY ACTIVITIES REPORT Until the end of the March quarter, the Hengjaya Mine team has rehabilitated 2,097 Ha of watershed area in Central Sulawesi since 2019. The planting activities were carried out in two main blocks: Ensa (937 Ha) and Bomba (1,160 Ha), in which 222 Ha of the forme
Slide 17: Siduarsi Project
MARCH 2023 QUARTERLY ACTIVITIES REPORT Siduarsi Project Since the first quarter of 2022 we have successfully drilled 2,074 exploration holes totalling 31,127 metres (see drill location below). The detailed geological modelling continues to be updated with over 23,000 assays now received. The explora
Slide 18: Siduarsi project drone and lidar survey
MARCH 2023 QUARTERLY ACTIVITIES REPORT The project area of approximately 18,000 hectares was also surveyed a fixed wing drone, the areas included the IUP, associated strategic areas for potential haul road alignments and jetty infrastructure along coastline. GIS team conducting lidar survey Siduarsi
Slide 19: Finance: Balance sheet
MARCH 2023 QUARTERLY ACTIVITIES REPORT Finance 6 Balance sheet At 31 March 2023, the Group held: Cash and cash equivalents: US$275.1M (31 December 2022 - US$144.2M); Trade receivables: US$338.7M (31 December 2022 - US$180.5M); and Inventories: US$194.2M (31 December 2022 - US$207.8M). Cash and
Slide 20: Expenditures and cashflow
MARCH 2023 QUARTERLY ACTIVITIES REPORT Cashflow The following cashflow waterfall provides a reconciliation of cash movements for the Group during the March 2023 quarter. Underlying cash generation from operations (defined as EBITDA from operations less capex) was US$108.0M. In September 2022 the Com
Slide 21: Corporate: EV Battery Supply Chain Strategic Framework Agreement
MARCH 2023 QUARTERLY ACTIVITIES REPORT Corporate Electric Vehicle Battery Supply Chain Strategic Framework Agreement In January, the Company announced it had signed a multi-faceted Electric Vehicle Battery Supply Chain Strategic Framework Agreement (‘Strategic Agreement’) with Shanghai Decent, and h
Slide 22: Share Purchase Plan and dividend
MARCH 2023 QUARTERLY ACTIVITIES REPORT Share Purchase Plan In March the Company completed a Share Purchase Plan (‘SPP’) as part of its funding package in support of its multi-faceted Electric Vehicle Battery Supply Chain Strategic Framework Agreement. The SPP was strongly supported by Shareholders w
Slide 23: Contact information and New Notes details
MARCH 2023 QUARTERLY ACTIVITIES REPORT A material outcome of the New Notes issuance was a removal of all secured debt and a simplification of the Company’s capital structure. The Company’s outstanding bonds will now comprise of US$400 million of New Notes, maturing 21 October 2028 and US$246 million