Nickel Industries Limited · ASX:NIC
Nickel Industries — Q4 2022 Earnings Presentation
20 slides from Nickel Industries's earnings presentation, Jan 31, 2023
Slide 1: Quarterly Activities Report - quarter ended 31 December 2022
30 SEPTEMBE QUARTERLY ACTIVITIES REPORT For the quarter ended 31 December 2022 Transition to nickel matte, ANI ramp-up and record Hengjaya Mine ACN 127 510 589 production underpins record EBITDA from operations of US$106.1M ASX release: 31 January 2023 RKEF operations ASX: NIC Record RKEF quarterl
Slide 2: December 2022 Quarterly Activities Report
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT The Directors are pleased to present the December 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:
Slide 3: Managing Director commentary and EV battery strategy
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT The final element to our Electric Vehicle Battery Supply Chain Strategic Framework Agreement is the acquisition of a further 10% in the Oracle Nickel project for US$75 million, which is the same price as over a year ago and significantly cheaper than some of
Slide 4: RKEF operations key reporting metrics
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT RKEF operations Key reporting metrics RKEF OPERATIONS HNI RNI ANI ONI Total NPI production tonnes - 39,488 85,238 7,504 132,230 NPI grade % - 13.1 14.6 10.0 13.9 Nickel in NPI tonnes - 5,154 12,428 747 18,329 - September quarter tonnes 5,111 5,170 9,994 - 20
Slide 5: Commentary on RKEF operations
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Commentary on RKEF operations Production During the December quarter the Company’s RKEF operations produced 23,072 tonnes of nickel metal, an increase of 13.8% from 20,275 tonnes produced in the September quarter. 18,329 tonnes were produced as nickel in NPI
Slide 6: Revenue and contract pricing
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Revenue and contract pricing During the quarter, the Hengjaya Nickel, Ranger Nickel and Angel Nickel projects recorded combined sales (on a 100% basis) of US$371.2M, an increase of 16.3% from US$319.2M in the September quarter. This record RKEF revenue was g
Slide 7: Operating costs and NPI production
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT The December quarter marked the Company’s first quarter of HG matte sales from Hengjaya Nickel. As previously advised, Hengjaya Nickel’s initial matte production is being delivered into an existing sales contract that Tsingshan has in place with a third part
Slide 8: Operating cash costs at Hengjaya Nickel
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Operating cash costs for the December quarter at Hengjaya Nickel (US$15,653/t) were 12.8% higher than the September quarter as a result of switching production from NPI to HG nickel matte. The increased costs were predominantly attributable to additional pro
Slide 9: EBITDA and underlying cash generation; Safety
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT EBITDA and underlying cash generation The Company’s RKEF operations delivered EBITDA of US$90.0M during the December quarter, an increase of 98.7% from US$45.3M in the September quarter. This comprised EBITDA of US$25.0M from Hengjaya Nickel, US$13.5M from R
Slide 10: Mining operations
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Mining operations Hengjaya Mine (80% interest held by Nickel Industries) During the December quarter, the Hengjaya Mine delivered mine production of 2,707,858 wet metric tonnes (‘wmt’), up 59.5% from 1,697,976 wmt in the September quarter. EBITDA increased 5
Slide 11: Haul road
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Mine operations at the Central Pits, including some limonite stockpiles Haul road The mobilisation of the contractor (Presisi) to the haul road project was well advanced during the quarter and the construction commenced in a number of areas. The balance of m
Slide 12: Resource Drilling
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Water sampling and dust monitoring in Hengjaya Mines operation areas. Resource Drilling Exploration drilling is continuing at IPPKH 3 (South area), the drill rigs are focusing on the infill drilling required to further update and refine mine plans, schedules
Slide 13: Safety, Environment and Community
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Safety, Environment and Community Safety During the December quarter there were no lost time injuries (‘LTI’) recorded at the mine, with over 4.6 million work hours registered since the last reported LTI in November 2021. This gives the Hengjaya Mine operati
Slide 14: Environment and Sustainability
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Environment and Sustainability Hengjaya Mine nursery for rehabilitation During the quarter Nickel Industries was advised that it had earned a Silver rank award at the Asia Sustainability Reporting Rating (ASRRAT) 2022 for its inaugural Environmental, Social,
Slide 15: ESG acknowledgments and Siduarsi social study
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT The Company’s ESG performance has received several acknowledgments, including seven trophies at the Environmental and Social Innovation Awards (ENSIA), a significantly improved rating at S&P Global’s Corporate Sustainability Assessment (CSA), in which the Co
Slide 16: Siduarsi Project
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Siduarsi Project Since the first quarter of 2022 over 21,384 metres of drilling have been completed (see drill location below). Detailed geological modelling is well advanced and new areas in the west of the IUP are currently being drilled. Currently there a
Slide 17: Finance - Balance sheet
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Finance 8 Balance sheet At 31 December 2022, the Group held: Cash and cash equivalents: US$144.2M (30 September 2022 - US$146.7M); Trade receivables: US$180.5M (30 September 2022 - US$189.9M); and Inventories: US$207.8M (30 September 2022 - US$176.6M).
Slide 18: Cashflow and Expenditures
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Cashflow The following cashflow waterfall provides a reconciliation of cash movements for the Group during the December 2022 quarter. Underlying cash generation from operations (defined as EBITDA from operations less capex) was US$98.2M. Following the Compan
Slide 19: Corporate - Hengjaya Nickel transitions to nickel matte
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT Corporate Hengjaya Nickel transitions to nickel matte production At the start of the quarter the Company announced that the Hengjaya Nickel project would transition from producing NPI to production of nickel matte. Hengjaya Nickel produces a low-grade (‘LG’)
Slide 20: Acquired Assets and Acquired Options
DECEMBER 2022 QUARTERLY ACTIVITIES REPORT The Acquired Assets comprise: (i) a 10% interest in PT Huayue Nickel Cobalt (‘HNC’) which the Company will acquire from Newstride Development Limited (‘Newstride’), an entity within the Tsingshan group and an affiliate of Shanghai Decent) for US$270 million.