28 August 2025
ASX Limited 20 Bridge Street
Sydney NSW 2000 (41 pages)
HALF YEAR FINANCIAL REPORT
Highlights: 6 Months to 6 Months to 30 June 2025 30 June 2024 US$m US$mNickel Industries Group Results:
Sales revenue: 829.7 843.3
Gross profit: 114.8 96.3
Operating profit: 98.7 87.8
Profit after tax: 25.5 14.0
Adjusted EBITDA: 159.3 155.7
30 June 2025 31 December 2024 US$m US$m
Nickel Industries Group Balance Sheet:
Total assets: 3,837.1 3,896.2
Net assets: 2,532.5 2,548.2
66,450 tonnes of finished nickel metal produced in NPI and MHP
11.6 million tonnes of saprolite and limonite ore mined at the Hengjaya Mine
ENC project ready to commence staged commissioning
Yours sincerely
Richard Edwards Company Secretary
NICKEL INDUSTRIES LIMITED
ABN 44 127 510 589
Level 2, 66 Hunter Street Sydney NSW 2000 Australia
T +61 2 9300 3311
F +61 9221 6333
E info@nickelindustries.com
W https://www.nickelindustries.com
Appendix 4D Half Year Report
Name of entity
NICKEL INDUSTRIES LIMITED
ABN or equivalent company reference
Financial half year ended ('current period')
44 127 510 589
30 JUNE 2025
Results for announcement to the market
Revenues from ordinary activities down 1.6% to US$829.7M Profit from ordinary activities after tax attributable to up 119.3% to US$11.3M members Net profit for the period attributable to members up 119.3% to US$11.3M | ||
Dividends (distributions) | Amount per security | Franked amount per security |
Final dividend Interim dividend | N/A Nil¢ | N/A Nil¢ |
Previous corresponding period Final dividend Interim dividend | N/A A$0.025 | N/A Nil¢ |
Record date for determining entitlements to the N/A dividend. Brief explanation of any of the figures reported above and short details of any bonus or cash issue or other item(s) of importance not previously released to the market: Refer attached reports. | ||
NTA backing | Current period | Previous corresponding period |
Net tangible asset backing per ordinary security | US$0.567 | US$0.642 |
Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors' Report and the consolidated financial statements for the half-year ended 30 June 2025.
This report is based on the consolidated financial statements for the half-year ended 30 June 2025 which have been reviewed by KPMG.
NICKEL INDUSTRIES LIMITEDand its controlled entities
A.B.N. 44 127 510 589
INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2025Table of Contents
Directors' Report 3
Lead Auditor's Independence Declaration 11
Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income 12
Condensed Consolidated Interim Statement of Financial Position 13
Condensed Consolidated Interim Statement of Changes in Equity 14
Condensed Consolidated Interim Statement of Cash Flows 15
Notes to the Consolidated Interim Financial Statements 16
Directors' Declaration 36
Independent Auditor's Review Report 37
Corporate Directory 39
The Directors of Nickel Industries Limited (Nickel Industries or the Company) and its subsidiaries (the Group) submit their financial report for the half year ended 30 June 2025 and the Auditor's Review Report thereon.
All amounts are reported in US$ unless otherwise stated. DIRECTORS
The names of the Directors of the Company in office during the half year period and until the date of this report were:
Norman Seckold - Chairman and Executive Director since 12 September 2007 Justin Werner - Managing Director since 23 August 2012
Christopher Shepherd - Executive Director since 23 December 2022 James Crombie - Non-Executive Director since 23 May 2008 Emma Hall - Non-Executive Director since 11 June 2024
Dasa Sutantio - Non-Executive Director from 29 May 2020 to 11 March 2025 Haijun Wang - Non-Executive Director since 1 November 2023
Muliady Sutio - Non-Executive Director since 21 September 2023 Xu Yuanyuan - Non-Executive Director since 26 April 2018 William Shangjaya - Non-Executive Director since 9 May 2023
RESULTS
The profit of the Group for the half year after providing for income tax amounted to $25,503,730 (2024 - $14,047,242).
REVIEW OF OPERATIONS
During and following the half year ended 30 June 2025, significant milestones were achieved as follows:
Highlights:
The Company's processing operations produced a combined 66,450 tonnes of nickel metal. 62,257 tonnes of this was nickel in NPI and 4,193 tonnes of attributable nickel in MHP. Adjusted EBITDA1for the half year period was $78.3m for RKEF operations and the Company's combined attributable EBITDA from HPAL operations (its 10% interest in the HNC HPAL and its NIC trading division) was $27.1m.
11,572,453 wet metric tonnes (wmt) of nickel ore were mined at the Hengjaya Mine (2,334,738 wmt of saprolite ore and 9,237,715 wmt of limonite ore) and 5,862,644 wmt of nickel ore were sold (2,751,591 wmt of saprolite ore and 3,111,053 wmt of limonite ore). Adjusted EBITDA from the Hengjaya Mine for the year was $70.3m.
In February 2025, the Company declared a final dividend of A$0.015 per share, with respect to the full year 2024 financial result, taking the total dividends for 2024 to $0.04 per share. At the same time, the Company implemented a Dividend Reinvestment Plan, whereby shareholders could elect to subscribe for additional ordinary shares in the Company in lieu of receiving a cash payment.
1 Adjusted EBITDA is defined by the Company as profit/(loss) for the period, plus depreciation and amortisation costs, plus impairment, plus foreign exchange gains/(losses), plus interest income/(expenses), plus withholding tax expense. This non-IFRS financial measure, which is referred to throughout the directors' report, is used internally by management to assess the performance of the Group's business and make decisions on allocation of resources. This non-IFRS measure has not been subject to audit or review.
Safety
The Company-wide 12-month lost time injury frequency rate (LTIFR) as at the end of June 2025 was 0.05, with no lost time injuries (LTI) recorded during the quarter, against 4.6 million work hours registered. For the twelve months to 30 June 2025, there were 18.6 million work hours registered, with one LTI occurring.
The Company-wide 12-month rolling total recordable injury frequency rate (TRIFR) as at the end of June 2025 was 1.29.
The Hengjaya Mine has recorded over 22.6 million work hours since the last reported LTI in November 2021. The Company will continue to strengthen its 'best practice' mining and processing standards. All the operations are focused on safety training, risk assessments and change management. The Company is committed to continuous improvement in all operations and will continue to work collaboratively with stakeholders to drive positive environmental, safety, social, and governance outcomes.
Sustainability
Third Green PROPER rating
In February, the Company's Hengjaya Mine was awarded a third consecutive Green PROPER Award from the Ministry of Environment and Forestry, which indicates beyond compliance practices in terms of ESG implementation and reporting. The Hengjaya Mine became the sole entity from Morowali and the only mining company from Central Sulawesi to achieve this rank, confirming its growing status as a showpiece mine for responsible and sustainable nickel mining in Indonesia. The ESG leading awards will further support the Hengjaya Mine's application to increase the annual mining quota from 9 million wmt to 19 million wmt. The Green PROPER rating places Nickel Industries among the industry's sustainability leaders and positions the Company well for future Gold PROPER candidacy.
Performance and Awards
The Company's leadership in sustainability has been further acknowledged through multiple awards during the year. A major milestone was achieved with Nickel Industries' inclusion in the Fortune Indonesia Change the World 2024 list, a prestigious recognition that highlights companies making a meaningful impact on society and the environment while maintaining strong business performance. This accolade reflects the Company's ongoing efforts to drive sustainable mining practices and community development initiatives. In February, the Company's Hengjaya Mine gained international recognition in Vietnam, receiving an award for outstanding corporate social responsibility in Asia. This achievement underscores the Company's proactive approach in supporting local communities, improving health and education standards, and driving sustainable economic development.
PROPER and Fortune Indonesia Award ceremonies
RKEF OPERATIONS
(80% indirect interest held by Nickel Industries)
During the half year, the Company's RKEF operations delivered production of 522,601 tonnes of NPI with 62,257 tonnes of nickel metal, just below 2024's 63,814 tonnes of nickel metal. Adjusted EBITDA from RKEF operations was $78.3m for the half year period ended 30 June 2025 (30 June 2024: $109.0m). The decrease in Adjusted EBITDA was driven by a 5% decrease in sale price, 4% decrease in sales volume and 4% increase in cash costs, predominantly driven by higher nickel ore costs.
Production | Units | 2024 | 2025 |
NPI production | tonnes | 518,199 | 522,601 |
Nickel grade | % | 12.3 | 11.9 |
Total nickel production | tonnes | 63,814 | 62,257 |
Cash costs | $/t Ni | 9,716 | 10,117 |
Sales | Units | 2024 | 2025 |
Wtd. Avg contract price | $/t Ni | 11,290 | 11,350 |
Sales | tonnes | 65,032 | 62,641 |
Revenue | US$m | 731.9 | 708.8 |
Adjusted EBITDA | US$m | 109.0 | 78.3 |
Adjusted EBITDA/t | $/t Ni | 1,677 | 1,251 |
HPAL OPERATIONS
Huayue Nickel Cobalt (10% indirect interest held by Nickel Industries)
HNC distributes offtake to shareholders on a pro-rata ownership basis, with Nickel Industries holding a 10% interest via its trading entity Tsing Creation (NIC trading division). This division's profit is driven by profit on provisional sales during the quarter and final contract settlements from previous quarters. Since operating the NIC trading division in October 2023, we have incrementally profited approximately US$2,300/t Ni on mixed hydroxide precipitate (MHP) sales. During 2025, the NIC trading division has delivered an incremental profit of approximately US$1,400/t Ni (contract profits ranging from US$1,200/t Ni to US$1,600/t Ni).
During the half year, HNC produced 41,934 tonnes of nickel and 3,799 tonnes of cobalt in MHP, outperforming nameplate capacity (60,000 tonnes of nickel per annum) by 40%. Combined operating cash costs increased by 7% period on period, primarily due to higher sulphur costs. Meanwhile, the MHP sale price remained stable, supported by higher metal payability against weaker nickel prices.
HNC EBITDA for the half year of US$4,562/t Ni was in line with the prior year, with improved MHP prices offsetting higher operating costs. The increase in the NIC trading division EBITDA for the period from US$4.5m to US$8.0m, was driven by final contract settlements from previous months. Ignoring the quarterly timing impacts, the quarterly "underlying" combined HPAL margin is estimated at approximately US$5,962/t Ni (including the NIC trading division's 2025 average profit of approximately US$1,400/t Ni).
Production | Units | 2024 | 2025 |
HNC production (100%) | Ni tonnes | 41,172 | 41,934 |
Co tonnes | 3,669 | 3,799 | |
Attributable HNC production (10%) | Ni tonnes | 4,117 | 4,193 |
Co tonnes | 367 | 380 | |
Cash cost | $/t Ni | 7,155 | 7,536 |
Sales | Units | 2024 | 2025 |
HNC sales (100%) | Ni tonnes | 39,541 | 43,611 |
Co tonnes | 3,524 | 3,962 | |
Attributable HNC sales (10%) | Ni tonnes | 3,954 | 4,361 |
Co tonnes | 352 | 396 | |
NIC trading division sales | Ni tonnes | 3,270 | 3,238 |
Co tonnes | 282 | 299 | |
Production | Units | 2024 | 2025 |
HNC EBITDA (100%) | US$m | 181.1 | 191.3 |
HNC EBITDA/t | US$/t Ni | 4,580 | 4,562 |
Attributable HNC EBITDA (10%) | US$m | 18.1 | 19.1 |
NIC trading division EBITDA | US$m | 4.5 | 8.0 |
Combined attributable EBITDA | US$m | 22.6 | 27.1 |
Excelsior Nickel Cobalt Project (44% indirect interest currently held by Nickel Industries)2
During the half year, all major equipment at the HPAL smelter was mounted, including the final Autoclave, enabling the connection of major process equipment via pipe racks and bridges. Feed preparation, autoclaves, CCD, reactors, thickeners and product packaging plants are all proceeding well. Sulphur incineration and power plant erection continued, with the power infrastructure now well underway throughout the facility. At the integrated refinery, installation continued for additional electrolysis cells, and the solvent extraction process is nearing completion. Feed preparation, solvent extraction and electrolysis well advanced and almost ready to commence commissioning in the coming months.
ENC HPAL smelter construction progress
ENC integrated refinery construction progress
2 The Company is scheduled to move to a 55% equity interest in ENC by 1 April 2026.
MINING OPERATIONS
Hengjaya Mine (80% interest held by Nickel Industries)
During the half year, the Company's Hengjaya Mine increased production and sales 90% and 81% respectively. Despite the increase, sales were negatively impacted by customer downtime during March and April, which meant the majority of limonite sales occurred in the other months. Nickel ore grades decreased due to mining a lower-grade pit area, however grades are expected to improve in August with the opening of a higher-grade mining pit area.
The nickel ore prices are based on the Indonesian benchmark price plus a local premium. During the half year, the saprolite contract price decreased 20%, driven by a reduction in the local premium and a reduction in nickel grade. The limonite contract price increased 31%, driven by an increase in demand and partially offset by a reduction in nickel grade. Despite the decrease in average sale price, this was offset by 19% decrease in operating costs. Adjusted EBITDA for the half year of US$70.3m was 76% higher than the US$39.9m reported in the comparable period.
Production | Units | 2024 | 2025 |
Saprolite production | wmt | 1,906,190 | 2,334,738 |
Limonite production | wmt | 4,177,937 | 9,237,715 |
Total production | wmt | 6,084,127 | 11,572,453 |
Overburden | BCM | 755,582 | 1,304,621 |
Strip ratio | BCM/wmt | 0.12 | 0.11 |
Sales | Units | 2024 | 2025 |
Saprolite sales | wmt | 2,029,529 | 2,751,591 |
Limonite sales | wmt | 1,216,733 | 3,111,053 |
Total sales | wmt | 3,246,263 | 5,862,644 |
Saprolite grade | % | 1.54 | 1.44 |
Limonite grade | % | 1.15 | 1.13 |
Saprolite sale price | US$/wmt | 32.7 | 26.0 |
Limonite sale price | US$/wmt | 17.7 | 23.1 |
Average sale price | US$/wmt | 27.1 | 24.5 |
Unit operating costs | US$/wmt | 14.9 | 12.5 |
Adjusted EBITDA | US$m | 39.9 | 70.3 |
Adjusted EBITDA/wmt | US$/wmt | 12.3 | 12.0 |
During the period the Company has continued to progress the increase in the Hengjaya Mine's sales quota (RKAB) from 9 million wmt per annum to 19 million wmt per annum. The feasibility study for this was approved in March, and the environmental study (AMDAL) was lodged in early August. The final step will be the issuance of the revised RKAB. The Company anticipates this in coming months, but should this be delayed further than the mine reaching its current sales quota of 9 million wmt per annum sales would need to cease until the revised RKAB has been received or the end of the current year.
Sampala Project (Nickel Industries with rights to acquire a 60% interest)
The Sampala Project continues to progress well, with the Company completing a detailed mine plan for the PT Erabaru Timur Lestari (ETL) IUP, targeting a production license of 6 million wmt per annum. The mine plan, along with the accompanying feasibility study, has been submitted to the Indonesian Mines Department. The Company is hopeful of receiving approval for the feasibility study in the coming months.
Construction of 8km of haul road, a 60-metre bridge, internal road systems and stage one accommodation is progressing well. The construction activities have resulted in the creation of approximately 450 new jobs. During the half year period 2,189 drill holes were completed for 61,887 metres.
Further details on the Sampala acquisition can be found on the Company's website (ASX Announcement - 17 September 2024)and (ASX Announcement - 5 February 2025).
Sampala haul road construction
Siduarsi Project (51% interest held by Nickel Industries, with rights to move to 100%)
During the quarter, the Company continued to advance approval of its feasibility study, which will target a production license of 3 million wmt of ore per annum. Surface sampling commenced on a new exploration area of approximately 1,200 hectares to the northwest of the current IUP, with 43 kms of ground penetrating radar surveying planned to be completed in the second half of 2025.
Further details on the Siduarsi acquisition can be found on the Company's website (ASX Announcement - 23 September 2024).
SUBSEQUENT EVENTS
On 1 July 2025 the Company issued 1,000,000 ordinary shares to Director and CFO Chris Shepherd, following the vesting of 1,000,000 share rights.
In July 2025 the Company announced that the construction of the integrated nickel refinery at the ENC project reached a point at which staged commissioning could commence, but that with the issuance of ENC's Izin Usaha Industri (IUI), which is an industrial business licence that allows commercial sales to be undertaken, commissioning would be delayed until the IUI was in place, with focus then on the completion of the HPAL smelter and sulphate circuit. The Company expects the IUI to be issued early in Q1 of 2026.
Other than the matters detailed above, there has not arisen in the interval between the end of the half year and the date of this report any other item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.
LEAD AUDITOR'S INDEPENDENCE DECLARATION
A copy of the Lead Auditor's Independence Declaration on page 11 as required under Section 307C of the Corporations Act 2001 is attached to and forms part of the Directors' Report for the half-year ended 30 June 2025.
Signed in accordance with a resolution of the Directors.
Norman Seckold Justin Werner
Chairman Managing Director
Sydney, 28 August 2025
Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
To the Directors of Nickel Industries Limited
I declare that, to the best of my knowledge and belief, in relation to the review of Nickel Industries Limited for the Interim Period ended 30 June 2025 there have been:
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the review; and
no contraventions of any applicable code of professional conduct in relation to the review.
KPMG Adam Twemlow
Partner
Brisbane
28 August 2025
11
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.
AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 JUNE 2025US$ | Notes | 6 months to 30 June 2025 $ | 6 months to 30 June 2024 $ |
Sales revenue | 829,703,011 | 843,280,448 | |
Cost of sales | (657,432,690) | (683,173,149) | |
Depreciation and amortisation expense | 9,12 | (57,433,920) | (63,852,613) |
Gross profit | 114,836,401 | 96,254,686 | |
Consultants' and administrative expenses | (10,929,824) | (6,329,067) | |
Directors' fees1 | (1,333,298) | (833,302) | |
Exploration and evaluation expenditure | (348,415) | (568,237) | |
Share of profit of equity accounted investee | 12 | 8,235,209 | 6,594,510 |
Share based payments | 15 | (630,056) | - |
Other expenses | 4 | (11,120,160) | (7,279,132) |
Results from operating activities | 98,709,857 | 87,839,458 | |
Financial income | 5 | 3,077,360 | 9,349,201 |
Financial expense | 5 | (51,839,235) | (60,932,912) |
Net financial expense | (48,761,875) | (51,583,711) | |
Profit before income tax | 49,947,982 | 36,255,747 | |
Income tax expense | (24,444,252) | (22,208,505) | |
Profit for the period | 25,503,730 | 14,047,242 | |
Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations | (34,138) | - | |
Total comprehensive income for the period | 25,469,592 | 14,047,242 | |
Profit attributable to: Owners of the Company | 11,265,807 | 5,136,972 | |
Non-controlling interest | 14,237,923 | 8,910,270 | |
Profit for the period | 25,503,730 | 14,047,242 | |
Total comprehensive income attributable to: Owners of the Company | 11,266,077 | 5,136,972 | |
Non-controlling interest | 14,203,515 | 8,910,270 | |
Total comprehensive income for the period | 25,469,592 | 14,047,242 | |
Earnings per share Basic and diluted profit per share (cents) | 7 | 0.26 | 0.12 |
The above condensed consolidated interim statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
1 Refer to Note 2 for reclassification of prior period expenses.
AS AT 30 JUNE 2025US$ | Notes | 30 June 2025 $ | 31 December 2024 $ |
Current assets | |||
Cash and cash equivalents | 112,089,035 | 210,953,629 | |
Cash reserve | 33,275,802 | 11,514,444 | |
Trade and other receivables | 6 | 263,632,717 | 345,632,514 |
Inventory | 8 | 179,528,443 | 139,818,686 |
Other current assets | 82,079,752 | 36,002,832 | |
Total current assets | 670,605,749 | 743,922,105 | |
Non-current assets | |||
Other non-current asset | 61,250,049 | 68,243,467 | |
Trade and other receivables | 6 | 83,583,811 | 49,498,824 |
Inventory | 8 | 77,698,105 | 53,035,397 |
Property, plant and equipment | 9 | 1,522,176,052 | 1,572,652,484 |
Exploration and evaluation assets | 63,177,855 | 56,211,778 | |
Investment in equity accounted investees | 12 | 1,238,510,126 | 1,230,274,917 |
Intangible assets | 12 | 72,726,077 | 75,065,789 |
Goodwill | 10 | 47,343,509 | 47,343,509 |
Total non-current assets | 3,166,465,584 | 3,152,326,165 | |
Total assets | 3,837,071,333 | 3,896,248,270 | |
Current liabilities | |||
Trade and other payables | 11 | 155,265,548 | 194,768,408 |
Current tax payable | 33,326,700 | 21,571,187 | |
Provision | 2,438,710 | 2,256,151 | |
Borrowings | 13 | 228,154,278 | 136,381,806 |
Total current liabilities | 419,185,236 | 354,977,552 | |
Non-current liabilities | |||
Provision - rehabilitation | 758,320 | 921,522 | |
Deferred income tax liability | 64,212,592 | 64,212,593 | |
Other non-current liability | 9,393,275 | 9,726,283 | |
Borrowings | 13 | 811,043,562 | 918,180,614 |
Total non-current liabilities | 885,407,749 | 993,041,012 | |
Total liabilities | 1,304,592,985 | 1,348,018,564 | |
Net assets | 2,532,478,348 | 2,548,229,706 | |
Equity | |||
Share capital | 14 | 2,058,952,334 | 2,035,227,454 |
Reserves | 19,680,672 | 19,050,346 | |
Retained profits | 32,266,838 | 61,739,540 | |
Total equity attributable to equity holders of the Company | 2,110,899,844 | 2,116,017,340 | |
Non-controlling interest | 421,578,504 | 432,212,366 | |
Total equity | 2,532,478,348 | 2,548,229,706 |
The above condensed consolidated interim statement of financial position should be read in conjunction with accompanying notes.
NICKEL INDUSTRIES LIMITEDand its controlled entities
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 JUNE 2025Non- | |||||
controlling | |||||
Notes Share capital | Retained profits | Reserves | Total | interest | Total equity |
$ | $ | $ | $ | $ | $ |
US$
Balance at 1 January 2024 Total comprehensive income for the period Profit for the period | 2,032,927,026 - | 373,060,100 5,136,972 | 19,065,940 - | 2,425,053,066 5,136,972 | 481,588,522 8,910,270 | 2,906,641,588 14,047,242 | ||
Total comprehensive income for the period | - | 5,136,972 | - | 5,136,972 | 8,910,270 | 14,047,242 | ||
Transactions with owners, recorded directly in equity Dividends | - | (69,904,787) | - | (69,904,787) | - | (69,904,787) | ||
Distributions to non-controlling interest | - | - | - | - | (21,360,806) | (21,360,806) | ||
Balance at 30 June 2024 | 2,032,927,026 | 308,292,285 | 19,065,940 | 2,360,285,251 | 469,137,986 | 2,829,423,237 | ||
Balance at 1 January 2025 | 2,035,227,454 | 61,739,540 | 19,050,346 | 2,116,017,340 | 432,212,366 | 2,548,229,706 | ||
Total comprehensive income for the period | ||||||||
Profit for the period | - | 11,265,807 | - | 11,265,807 | 14,237,923 | 25,503,730 | ||
Other comprehensive income/(loss) | - | - | 270 | 270 | (34,408) | (34,138) | ||
Total comprehensive income for the period | - | 11,265,807 | 270 | 11,266,077 | 14,203,515 | 25,469,592 | ||
Transactions with owners, recorded directly in equity | ||||||||
Issue of shares | 14 | 23,724,880 | - | - | 23,724,880 | - | 23,724,880 | |
Share based payments | 15 | - | - | 630,056 | 630,056 | - | 630,056 | |
Dividends | 14 | - | (40,738,509) | - | (40,738,509) | - | (40,738,509) | |
Distributions to non-controlling interest | - | - | - | - | (24,837,377) | (24,837,377) | ||
Balance at 30 June 2025 | 2,058,952,334 | 32,266,838 | 19,680,672 | 2,110,899,844 | 421,578,504 | 2,532,478,348 |
The above condensed consolidated interim statement of changes in equity is to be read in conjunction with the accompanying notes.
US$ Cash flows from operating activities | Notes | 30 June 2025 $ | 30 June 2024 $ |
Cash receipts from customers | 846,244,728 | 860,352,068 | |
Cash payments in the course of operations | (789,914,189) | (674,659,554) | |
Interest received | 1,138,090 | 9,635,064 | |
Taxes and fees refund/(paid) | 3,099,072 | (11,829,291) | |
Payments for exploration and evaluation | (443,485) | (1,463,231) | |
Net cash from operating activities | 60,124,216 | 182,035,056 | |
Cash flows from investing activities | |||
Receipts from term deposits | - | 490,913,669 | |
Payments for exploration and evaluation assets | (9,547,011) | (8,436,038) | |
Payments for property, plant and equipment | (12,007,017) | (4,260,864) | |
Payments for construction in progress | (1,226,087) | (48,166,497) | |
Advancement of loan monies | (3,000,000) | - | |
Payments for investments | 12 | - | (316,300,000) |
Net cash (used in)/from investing activities | (25,780,115) | 113,750,270 | |
Cash flows from financing activities Proceeds from issue of shares 1 | 14 | - | - |
Dividend distributions 1 | 14 | (17,013,629) | (69,904,787) |
Proceeds from borrowings, net of transaction costs | 13 | - | 159,553,028 |
Prepayment for borrowings cost | - | (3,770,000) | |
Payments for cash reserve amount | (21,761,358) | (2,725,438) | |
Repayment of borrowings | 13 | (22,050,000) | (249,418,000) |
Payment of interest charges | 13 | (45,192,593) | (39,319,222) |
Distributions to non-controlling interest | (24,837,377) | (21,360,806) | |
Net cash used in financing activities | (130,854,957) | (226,945,225) | |
Net (decrease)/increase in cash and cash equivalents | (96,510,856) | 68,840,101 | |
Effect of exchange rate adjustments on cash held | (2,353,738) | (1,375,575) | |
Cash and cash equivalents at the beginning of the period | 210,953,629 | 284,053,495 | |
Cash and cash equivalents at the end of the period | 112,089,035 | 351,518,021 |
The above condensed consolidated interim statement of cash flows should be read in conjunction with the accompanying notes.
1 The issuance of ordinary shares disclosed in Note 14 included non-cash transactions of $23,724,880 relating to the Company's Dividend
Reinvestment Plan.
NOTE 1 - REPORTING ENTITY
Nickel Industries Limited (the 'Company') is a company domiciled in Australia. The condensed consolidated interim financial report for the half year ended 30 June 2025 comprises the Company and its subsidiaries (together referred to as the 'Group'). The Group is a for-profit entity and is involved in nickel mining and production operations.
The consolidated annual financial report of the Group as at and for the period ended 31 December 2024 is available upon request from
the Company's registered office at Level 2, 66 Hunter Street, Sydney, NSW, 2000 or at https://www.nickelindustries.com.
NOTE 2 - BASIS OF PREPARATION
Statement of compliance
The condensed consolidated interim financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134 'Interim Financial Reporting'.
The condensed consolidated interim financial statements do not include full disclosures of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the financial report for the year ended 31 December 2024 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules.
The financial report was authorised for issue by the Directors on 28 August 2025.
Basis of measurement
The financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair value.
Functional and presentation currency
These financial statements are presented in United States dollars, which is the Company's functional currency.
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements, except for the going concern assumption as outlined on page 17.
In forming views on these significant areas of estimation uncertainty, management have also had regard to the broader macroeconomic environment. In particular, the current half year saw nickel prices remain below long-term averages as the market remained oversupplied, as well as a slower than expected growth in the EV sales. Management has had regard to these factors when assessing the short-term to medium-term outlook for nickel pricing, and the impacts this may have on financial performance of the Group as a result.
Basis of Preparation - Going Concern
The interim financial statements have been prepared on a going concern basis which contemplates the realisation of assets and settlement of liabilities in the ordinary course of business.
The Group reported a profit after tax for the interim period ended 30 June 2025 of $25,503,730 (interim period ended 30 June 2024:
$14,047,242) and generated positive net cash from operations of $60,124,216 (interim period ended 30 June 2024: $182,035,056). As at 30 June 2025, the Group has a net current asset surplus of $251,420,513 (30 June 2024: $388,944,553) and cash and cash equivalents of $112,089,035 (30 June 2024: $210,953,629).
As outlined in Note 13 the Group has current financing liabilities at 30 June 2025 amounting to $228,154,278 in connection with the Senior Unsecured Notes and Bank Facilities. Additionally, as outlined in Note 18, the Group has capital commitments in January and April 2026 of $126,500,000 each, relating to the final acquisition payments on the ENC Project to increase its interest from 44% to 55%.
Whilst nickel prices improved marginally across the interim period, the RKEF operating margins remained below historical averages due to an increase in production costs and impacts on production from weather events throughout the period.
Management have had regard to these factors when assessing the short to medium-term outlook and the impacts this may have on the financial performance of the Group.
Management have prepared detailed cash flow projections for the period 1 July 2025 to 30 September 2026 which support the ability of the Group to continue as a going concern. These cash flow projections include the following key assumptions:
Hengjaya Mine receiving an approved work plan in the short-term to increase its licence capacity (RKAB) beyond 9 million tonnes per annum. As at the end of July, the Hengjaya Mine had sold 7.3 million tonnes of Nickel ore and is dependent on the granting of its licence to achieve cash flow forecasts beyond its current capacity.
The ENC Project successfully completing construction and commissioning to generate positive cashflow returns by January 2026;
The Group successfully raising additional funding and improving financial performance to fund working capital, debt repayments and other capital commitments as outlined in Note 18; and
The Group continuing to comply with its debt obligations as outlined in Note 13.
Subsequent to interim period end, management continue to closely monitor the financial performance of the Group and are actively considering a number of alternative funding options. The Group aims to strengthen its credit profile and improve liquidity through refinancing its existing Senior Unsecured Notes and/or Bank Facilities. Management's strategy aims to extend debt tenor, optimise the amortisation schedule, and reduce funding costs where possible, thereby improving liquidity and cash flow availability post-debt servicing.
The ability of the Group to continue as a going concern is dependent on the achievement of the above key assumptions in the timeframe required, which is inherently uncertain by nature. This gives rise to a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern.
In the event the Group does not continue as a going concern it may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the financial statements.
Reclassification of prior period expenses
Certain types of expenses have been reclassified within the Consolidated Statement of Profit or Loss and Other Comprehensive Income to more appropriately reflect the underlying nature of the expenses. The impact of this change on the previously reported comparative period was directors' fees of $833,302 being reclassified from consultants' and administrative expenses to directors' fees.
NOTE 3 - MATERIAL ACCOUNTING POLICIES
The accounting policies applied by the Group in these condensed consolidated interim financial statements are materially the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2024. The policy for recognising and measuring income taxes in the interim period is consistent with that applied in the comparative interim period, except for the changes outlined below:
The Group has previously adopted AASB 2023-2 Amendments to Australian Accounting Standards - International Tax Reform - Pillar Two Model Rules which provides a temporary mandatory exception from deferred tax accounting effective immediately. The Company has assessed the implications of the Pillar Two global minimum tax rules under IAS12 and recognised an estimated tax expense of
$1,205,733 and corresponding liability in relation earnings in the jurisdiction of Hong Kong for the six-month period ended 30 June 2025. The top-up tax relates to the Group's operations in Hong Kong, where the profit is not subject to Hong Kong profits tax and reduces its effective tax rate to below 15 percent.
As of 30 June 2025, Hong Kong has enacted legislation to implement Pillar Two rules for income years beginning on or after 1 January 2025. Therefore from 2025, Tsing Creation International Holding Limited will be liable for the top-up tax in relation to its operations instead of the Company.
6 months to | 6 months to | |
30 June | 30 June | |
2025 $ | 2024 $ | |
NOTE 4 - OTHER EXPENSES | ||
Audit fees - KPMG audit and review of financial reports | 462,714 | 465,970 |
Travel | 158,580 | 265,355 |
Legal fees | 751,127 | 828,040 |
Withholding tax expenses | 3,117,439 | 4,028,303 |
Other | 6,630,300 | 1,691,464 |
11,120,160 | 7,279,132 |
6 months to 30 June 2025 | 6 months to 30 June 2024 | |
NOTE 5 - FINANCIAL INCOME AND FINANCE EXPENSE | ||
Interest income | 3,077,360 | 9,349,201 |
Interest expense* | (48,416,459) | (40,590,765) |
Foreign exchange loss | (3,422,776) | (20,342,147) |
(48,761,875) | (51,583,711) |
* Includes amortisation of bond issue costs and bank loan facility costs of $2,837,948 which are being expensed under the effective interest rate method. Refer to Note 13 for further details.
30 June | 31 December | |
2025 | 2024 | |
NOTE 6 - TRADE AND OTHER RECEIVABLES | $ | $ |
Current | ||
Sales taxes receivable* | 69,513,395 | 119,526,900 |
Trade receivables^ | 194,119,322 | 226,105,614 |
263,632,717 | 345,632,514 | |
Non-current | ||
Sales taxes receivable* | 83,583,811 | 49,498,824 |
83,583,811 | 49,498,824 |
* The four RKEF entities have the following sales tax receivable (VAT) amounts outstanding at 30 June 2025: PT Hengjaya Nickel Industry $12.2m, PT Ranger Nickel Industry $4.5m, PT Angel Nickel Industry $52.6m and PT Oracle Nickel Industry $83.6m. PT Hengjaya Nickel Industry, PT Ranger Nickel Industry and now PT Angel Nickel Industry are receiving VAT refunds regularly in the normal course of operations. During the period the PT Angel Nickel Industry received the VAT claim for the 2022 year ($36.4m). PT Oracle Nickel Industry has not yet commenced receiving VAT refunds.
^ Trade receivables are in the ordinary course of business and at 30 June 2025 are comprised as follows: PT Hengjaya Mineralindo
$37.4m (excludes saprolite ore receivables which are eliminated on consolidation), PT Hengjaya Nickel Industry $24.3m, PT Ranger Nickel Industry $25.1m, PT Angel Nickel Industry $46.0m, PT Oracle Nickel Industry $60.9m and Tsing Creation $0.4m.
6 months to | 6 months to | |
30 June | 30 June | |
2025 | 2024 | |
$ | $ | |
NOTE 7 - PROFIT PER SHARE | ||
Basic and diluted profit per share have been calculated using: | ||
Net profit for the period attributable to equity holders of the Company | 11,265,807 | 5,136,972 |
Nº of Shares | Nº of Shares | |
Weighted average number of ordinary shares (basic) | ||
Issued ordinary shares at the beginning of the period | 4,289,809,880 | 4,285,809,880 |
Effect of shares issued on 21 March 2025 | 28,524,737 | - |
Weighted average number of shares at the end of the period 4,318,334,617 4,285,809,880
Weighted average number of securities (diluted) | Nº of Securities | Nº of Securities |
Issued securities at the beginning of the period | 4,289,809,880 | 4,285,809,880 |
Effect of shares issued on 21 March 2025 | 28,524,737 | - |
Effect of performance and share rights issued on 30 June 2025 | 56,438 | - |
Weighted average number of securities at the end of the period 4,318,391,055 4,285,809,880 | ||
30 June | 31 December | |
2025 | 2024 | |
$ | $ | |
NOTE 8 - INVENTORY | ||
Current | ||
Inventory - Hengjaya Mine nickel ore stockpiles | 15,551,378 | 10,614,764 |
Inventory - nickel pig iron production raw materials | 160,294,081 | 121,021,810 |
Inventory - nickel pig iron | 3,682,984 | 8,182,112 |
179,528,443 | 139,818,686 | |
Non-current | ||
Inventory - Hengjaya Mine nickel ore stockpiles* | 77,698,105 | 53,035,397 |
77,698,105 | 53,035,397 | |
* The carrying value of limonite ore not forecast to be delivered in the next 12 months has been classified as non-current.
During the six-month period ended 30 June 2025, the Company's 80% subsidiary PT Hengjaya Mineralindo supplied saprolite nickel ore to the Company's 80% owned subsidiaries PT Hengjaya Nickel Industry, PT Oracle Nickel Industry and PT Ranger Nickel Industry under a series of offtake agreements to supply a minimum of 50,000 wmt of saprolite to each entity, with the exception of $1.8m of sales to PT Sai Niaga Internasional, a mining company operating Indonesia. During the period the PT Hengjaya Mineralindo supplied limonite ore to PT Longsen Metal Trading, a trading company operating in Indonesia under a contract to provide 850,000 wmt of limonite ore a month between January to September 2025.
NOTE 8 - INVENTORY (cont.)
Nickel pig iron production raw materials includes nickel ore acquired by PT Hengjaya Nickel Industry, PT Oracle Nickel Industry and PT Ranger Nickel Industry from PT Hengjaya Mineralindo, operator of the Hengjaya Mine. This continues to be valued at the PT Hengjaya Mineralindo cost of production.
Inventories are carried at the lower of cost and net realisable value. | ||
NOTE 9 - PROPERTY, PLANT AND EQUIPMENT | 30 June 2025 | 31 December 2024 |
Furniture and fittings | 68,373 | 110,690 |
Mine infrastructure assets | 31,363,697 | 29,438,875 |
Buildings | 311,163,464 | 319,059,462 |
Mining properties | 22,975,740 | 23,554,134 |
Office equipment | 782,672 | 946,995 |
Plant and machinery | 1,152,877,262 | 1,195,233,255 |
Motor vehicles | 491,866 | 386,600 |
Construction in progress* | 2,452,978 | 3,922,473 |
1,522,176,052 | 1,572,652,484 |
Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below.
Furniture and fittings | ||
Carrying amount at beginning of year | 110,690 | 176,793 |
Additions | 1,646 | 39,237 |
Depreciation | (43,963) | (105,340) |
Net book value | 68,373 | 110,690 |
Mine infrastructure assets | ||
Carrying amount at beginning of year | 29,438,875 | 31,160,514 |
Additions | 2,849,174 | 120,908 |
Depreciation | (924,352) | (1,842,547) |
Net book value | 31,363,697 | 29,438,875 |
Buildings and land Carrying amount at beginning of year | 319,059,462 | 327,088,090 |
Additions | 1,173,547 | 10,147,004 |
Depreciation | (9,069,545) | (18,175,632) |
Net book value | 311,163,464 | 319,059,462 |
Mining properties Carrying amount at beginning of year | 23,554,134 | 25,092,774 |
Additions | 73,632 | 8,208 |
Depreciation | (652,026) | (1,546,848) |
Net book value | 22,975,740 | 23,554,134 |
NOTE 9 - PROPERTY, PLANT AND EQUIPMENT (cont.) | 30 June | 31 December |
2025 | 2024 | |
Office equipment Carrying amount at beginning of year | 946,995 | 866,302 |
Additions | 42,617 | 476,410 |
Depreciation | (206,940) | (395,717) |
Net book value | 782,672 | 946,995 |
Plant and machinery Carrying amount at beginning of year | 1,195,233,255 | 1,451,756,907 |
Impairment | - | (181,177,407) |
Additions | 1,829,611 | 29,008,192 |
Disposal | (77,902) | (3,318,811) |
Depreciation | (44,107,702) | (101,035,626) |
Net book value | 1,152,877,262 | 1,195,233,255 |
Motor vehicles Carrying amount at beginning of year | 386,600 | 411,959 |
Additions | 194,945 | 159,806 |
Depreciation | (89,679) | (185,165) |
Net book value | 491,866 | 386,600 |
Construction in progress Carrying amount at beginning of year | 3,922,473 | 217,759 |
Additions | 3,451,219 | 4,955,424 |
Disposal | - | (7,921) |
Transfers* | (4,920,714) | (1,242,789) |
Net book value | 2,452,978 | 3,922,473 |
Total property, plant and equipment | 1,522,176,052 | 1,572,652,484 |
*Balances in construction in progress are transferred into other categories, as additions, on commissioning of projects, or when available for use in a manner that Management intended.
During the period, the Group acquired $6,165,175 of property, plant and equipment and recognised depreciation and amortisation totalling $55,094,207.
NOTE 10 - GOODWILL 30 June
2025
31 December
2024
Carrying amount at beginning of year | 47,343,509 | 102,748,404 |
Impairment | - | (55,404,895) |
47,343,509 | 47,343,509 |
Following the impairments recognised in the 31 December 2024 financial statements for Hengjaya Nickel and Ranger Nickel RKEF Projects, the remaining goodwill balance amounting to $47,343,509 pertain to the Angel Nickel and Oracle Nickel RKEF Projects, which are each considered to be individual cash generating units (CGUs).
The recoverable amount for each CGU was based on its value-in-use as determined through a discounted cash flow model at 31 December 2024. Each of the CGUs were assessed for external and internal impairment indicators at 30 June 2025 and the Directors determined there were no indicators present which would trigger further impairment tests.
The estimated recoverable amount of the Hengjaya Nickel and Ranger Nickel CGUs remain approximately equal to their carrying value. Therefore, a material adverse change in certain key assumptions, as disclosed in the 2024 annual report, would lead to additional impairment.
30 June | 31 December | |
NOTE 11 - TRADE AND OTHER PAYABLES | 2025 | 2024 |
Current | ||
Creditors | 138,737,596 | 182,038,005 |
Accruals | 12,253,613 | 8,857,094 |
Other | 4,274,339 | 3,873,309 |
155,265,548 | 194,768,408 | |
NOTE 12 - EQUITY-ACCOUNTED INVESTEES AND ASSOCIATED INTANGIBLE ASSETS | ||
30 June | 31 December | |
Investment in Equity Accounted Investee | 2025 | 2024 |
HNC - 10% interest | ||
Opening balance | 199,826,500 | 185,939,410 |
Share of profit of associate | 7,893,071 | 13,887,090 |
Carrying value of investment in HNC | 207,719,571 | 199,826,500 |
Excelsior Nickel - 44% interest | ||
Opening balance | 1,030,448,417 | 341,300,000 |
Acquisition of an additional 8.25% interest in Excelsior Nickel | - | 316,300,000 |
Acquisition of an additional 13.75% interest in Excelsior Nickel | - | 379,500,000 |
Share of profit/(loss) of associate | 342,138 | (6,651,583) |
Carrying value of investment in Excelsior Nickel | 1,030,790,555 | 1,030,448,417 |
1,238,510,126 | 1,230,274,917 | |
Intangible Asset | ||
HNC | ||
Opening balance | 75,065,789 | 79,745,215 |
Amortisation | (2,339,713) | (4,679,426) |
72,726,076 | 75,065,789 | |
30 June 2025 | 31 December 2024 | |
NOTE 13 - BORROWINGS | $ | $ |
Current | ||
Senior Unsecured Notes - October 2028 | 88,000,000 | 44,000,000 |
Interest on Senior Unsecured Notes - October 2028 | 8,750,000 | 8,750,000 |
Interest on BNI loan facility - October 2028 | 6,496,986 | 2,332,680 |
Interest on BNI loan facility - May 2029 | 3,894,792 | 4,211,626 |
Bank facility - October 2028 | 88,200,000 | 66,150,000 |
Bank facility - May 2029 | 32,812,500 | 10,937,500 |
228,154,278 | 136,381,806 | |
Non-current | ||
Senior Unsecured Notes - October 2028 | 307,768,011 | 350,904,857 |
Bank Facility - October 2028 | 287,311,416 | 330,579,115 |
Bank facility - May 2029 | 215,964,135 | 236,696,642 |
811,043,562 | 918,180,614 | |
Senior Unsecured Notes October 2028 |
In April 2023, the Company issued $400,000,000 of senior unsecured notes (Senior Unsecured Notes October 2028). Key terms of the Senior Unsecured Notes October 2028 are as follows:
Issue size of $400,000,000.
Coupon interest rate of 11.25% per annum.
Interest is payable on a semi-annual basis in arrears.
11% amortisation in April and October each year commencing on 21 October 2025.
Final Maturity Date of 21 October 2028.
NOTE 13 - BORROWINGS (cont.)
Bank facility October 2028
In October 2023 the Company executed financing facilities totalling $400,000,000 with Indonesian bank PT Bank Negara Indonesia
(Persero) Tbk (BNI) to support the Company's funding obligations in relation to the ENC Project.
The facilities comprise a 5-year senior term loan facility (the 2028 Facility) of $350,000,000, split across two tranches:
tranche A: $200,000,000 (secured against the Company's Angel Nickel Project and the Shareholder Loans); and
tranche B: $150,000,000 (unsecured).
In addition, the facilities include a $50,000,000 revolving credit facility (RCF), for general working capital purposes.
The interest rate applicable on the 2028 Facility is a margin above the Secured Overnight Financing Rate (SOFR) (currently ~5.3%), according to the following schedule: (i) initial 12-month period: 2.00% (ii) months 12 -18: 3.00% and (iii) 18 months onwards: 3.50%.
The margin applicable to the RCF is 3.00%. Amortisation of both tranche A and tranche B will commence 18 months after the signing of the Facility Agreement (i.e. in April 2025), with 6.3% to be paid every three months until the final maturity date of the 2028 Facility in October 2028.
In March 2024, the Company drew down the remaining $10,200,000 of tranche A and the $150,000,000 of tranche B. Transaction costs totalled $6,290,017. In July 2024, the Company drew down the $50,000,000 RCF. Transaction costs totalled $1,132,182.
Bank facility May 2029
In May 2024, the Company executed a $250,000,000, 5-year term loan facility (the 2029 Facility), jointly provided by tier-1 banks BNI and DBS Bank Ltd (DBS).
The 2029 Facility was established to support the funding requirements for the Company's acquisition of a 55% equity interest in the ENC project.
The interest rate applicable for the 2029 Facility will be a margin above the SOFR, according to the following schedule: (i) initial 12-month period: 2.00% (ii) months 12 -18: 3.00% and (iii) 18 months onwards: 3.50%. Amortisation will commence 6 months after the signing of the Facility Agreement (i.e. in November 2025), with 4.375% to be paid every three months until the final maturity date of the 2029 Facility in May 2029.
In July 2024, the Company drew down the $250,000,000. Transaction costs totalled $3,936,667.
Debt covenants
The bank facilities maturing October 2028 and May 2029, both include covenants that need to be complied within 12 months of the reporting date. The covenants state that at the interim and full year reporting period, the Group's Leverage Ratio (Net Debt to Consolidated EBITDA) does not exceed 2.5 times, Debt Service Coverage Ratio (Cashflow to Debt Service) is less than 1.3 times, Debt to Equity Ratio does not exceed 1.5 times and Security Coverage Ratio from Angel Nickel Industry for the $250,000,000 bank facility is not less than 1.75 times, otherwise the loans will be repayable on demand unless the Group can remedy through an equity cure.
NOTE 13 - BORROWINGS (cont.)
Management have prepared covenant calculations and forecasts for the above facilities which indicate compliance with the covenants outlined above. These covenant forecasts are dependent on the improved financial performance of the Group, including Hengjaya Mine receiving an approved work plan in the short-term to increase its licence capacity (RKAB) beyond 9 million tonnes per annum. Refer to Note 2 for further details.
The portion of the loan that is not required to be repaid within the next 12 months under the existing principal amortisation schedule, is classified as non-current at reporting date as the Group has an existing right to defer settlement of this portion of the loan for at least 12 months after the reporting period. The terms and conditions of the outstanding loans are as follows:
Currency | Nominal interest rate | Year of maturity | Carrying value 30 June | Face value 30 June | Carrying value 31 December | Face value 31 December | |
2025 | 2025 | 2024 | 2024 | ||||
Senior Unsecured Notes | US$ | 11.25% | 2028 | $ 404,518,011 | $ 400,000,000 | $ 403,654,857 | $ 400,000,000 |
Bank Facility October 2028 | US$ | 7.51%* | 2028 | 382,008,401 | 377,950,000 | 399,061,795 | 400,000,000 |
Bank Facility May 2029 | US$ | 6.59% | 2029 | 252,671,427 | 250,000,000 | 251,845,768 | 250,000,000 |
Total interest-bearing liabilities | 1,039,197,839 | 1,027,950,000 | 1,054,562,420 | 1,050,000,000 |
*Interest rate charged on Facility A as at 30 June 2025.
30 June
2025
31 December
2024
NOTE 14 - ISSUED CAPITAL No. No.
Issued and paid-up capital
Fully paid ordinary shares 4,339,935,875 4,289,809,880
Ordinary shares
Number of shares 2025
$ 2025
Number of shares 2024
$ 2024
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Balance at the beginning of the period | 4,289,809,880 | 2,035,227,454 | 4,285,809,880 | 2,032,927,026 |
Issue of shares | 50,125,995 | 23,724,880 | 4,000,000 | 2,300,428 |
Balance at the end of the period 4,339,935,875 2,058,952,334 4,289,809,880 2,035,227,454
During the half year period the Company issued 50,125,995 fully paid ordinary shares to participants in the Company's Dividend Reinvestment Plan (DRP), following the Company's declaration of a Final Dividend for 2024 of A$0.015 cents per share. The issue price of shares under the DRP was A$0.75 per share.
Options
There were no options granted, exercised or lapsed unexercised during the half year ended 30 June 2025 or the period ended 31 December 2024.
Rights
The Company issued both Performance and Share Rights during the half year ended 30 June 2025. These are detailed in Note 15.
Dividends
The Company declared and paid a final unfranked dividend for 2024 of A$0.015 per share during the half year ended 30 June 2025 amounting to $40,738,509.
NOTE 14 - ISSUED CAPITAL (cont.)
Ordinary shares
The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid. The holders of ordinary shares are entitled to receive dividends as declared from time to time.
NOTE 15 - SHARE BASED PAYMENTS
Performance Rights
During 2024, the Board of the Company completed a comprehensive remuneration framework review of the fixed remuneration and incentive arrangements for employees and contractors, with assistance from independent remuneration consultant, Mercer Consulting (Australia) Pty Ltd (Mercer). To ensure better alignment with long-term shareholder outcomes and to reward strong outperformance, commencing in 2025 the Company introduced both 'at-risk' short-term incentive (STI) and long-term incentive (LTI) components of employee and contractor remuneration packages.
Under the LTI component on 30 June 2025 the Company issued 7,215,256 performance rights for no consideration. This included 2,040,815 performance rights issued to the Company's executive directors, as approved by shareholders at the Company's Annual General Meeting (AGM) held on 22 May 2025.
The fair value of rights granted is measured at grant date and recognised as an expense over the period during which the director or employee becomes unconditionally entitled to the rights. The fair value of the rights granted is measured using a valuation methodology, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of rights that vest.
The vesting conditions for the performance rights comprise the following performance metrics (Performance Conditions), tested over the 3-year vesting period commencing on 1 January 2025:
a relative total shareholder return (TSR) metric compared to a defined peer group of ASX 200 listed entities, representing 30% of the total weighting;
an earnings per share (EPS) metric, representing 30% of the total weighting; and
strategic objectives metrics, representing 40% of the total weighting.
The performance conditions for the performance rights will be tested over a three-year period (Performance Period) from 1 January 2025 until 31 December 2027. Subject to satisfaction of the Performance Conditions, the Performance Rights will vest following release of the audited financial statements for 2027.
The fair value of the performance rights granted was measured using a Black-Scholes formula. The fair value of the 5,174,441 rights granted to Group employees and consultants was calculated as $0.6313 per right. The Black-Scholes formula model inputs were the Company's share price of $0.705 at the grant date (determined to be 25 June 2025 when the Offers had been accepted), a volatility factor of 45% (based on historical share price performance), a risk-free interest rate of 3.32% and a dividend yield of 3.5%. The fair value of the 2,040,815 rights granted to the Company's executive directors was calculated as $0.591 per right. The Black-Scholes formula model inputs were the Company's share price of $0.66 at the grant date (determined to be 22 May 2025 when shareholder approval to grant the rights was received at the AGM), a volatility factor of 45% (based on historical share price performance), a risk-free interest rate of 3.32% and a dividend yield of 3.5%.The total fair value of the rights granted was $2,584,804. Taking into account the progress against the vesting performance criteria detailed above, a share-based payment expense of $129,252 was taken up during the period ended 30 June 2025.
NOTE 15 - SHARE BASED PAYMENTS (cont.)
The following performance rights were on issue at 30 June 2025.
Number of Rights | Issued to | Grant Date | Issue Date | Vesting Date | Value per right |
5,174,441 | Employee/Contractors | 25 June 2025 | 30 June 2025 | February 2028 | $0.6313 |
2,040,815 | Executive Directors | 22 May 2025 | 30 June 2025 | February 2028 | $0.591 |
The weighted average exercise price of these performance rights are nil.
The weighted average remaining contractual life of performance rights outstanding at the end of the period was 2.67 years.
Share Rights
On 30 June 2025 the Company granted and issued 3,000,000 share rights for no consideration to Director and Chief Financial Officer Chris Shepherd. The issuance was approved by shareholders at the Company's AGM. Each Share Right will provide a right to acquire one Share at nil cost.
The Share Rights vest in three equal tranches:
First Tranche: 1 million Share Rights will immediately vest on the date that the Share Rights are granted to Mr Shepherd (and/or his nominee);
Second Tranche: 1 million Shares Rights will vest on the business day immediately following the release of the Company's FY25 annual financial results, provided that Mr Shepherd is an employee of, or service provider to, the Company on that date; and
Third Tranche: 1 million Share Rights will vest on the business day immediately following the release of the Company's FY26 annual financial results, provided that Mr Shepherd is an employee of, or service provider to, the Company on that date.
The fair value of the share rights granted was measured using a Black-Scholes formula, taking into account the terms and conditions upon which the share rights were granted. The Black-Scholes formula model inputs were the Company's share price of $0.66 at the grant date (determined to be 22 May 2025 when shareholder approval to grant the rights was received at the AGM), a volatility factor of 45% (based on historical share price performance), a risk-free interest rate range of between 3.00% to 3.27% and a dividend yield of between 0.0% to 1.8% The total fair value of the share rights granted was $1,235,452. A share-based payment expense of $500,804 was taken up during the period ended 30 June 2025.
The fair value of rights granted is measured at grant date and recognised as an expense over the period during which the participant becomes unconditionally entitled to the rights. The fair value of the rights granted is measured using a valuation methodology, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of rights that vest.
The following share rights were on issue at 30 June 2025.
Number of Rights | Issued to | Grant Date | Issue Date | Vesting Date | Value per right |
1,000,000 | Chris Shepherd | 22 May 2025 | 30 June 2025 | 30 June 2025 | $0.66 |
1,000,000 | Chris Shepherd | 22 May 2025 | 30 June 2025 | 28 February 2026 | $0.66 |
1,000,000 | Chris Shepherd | 22 May 2025 | 30 June 2025 | 28 February 2027 | $0.6393 |