Jefferies cautious on Australia's Nickel Industries' Indonesia bets

Nickel Industries

06/07/2026 21:10

** Jefferies says that while Nickel Industries NIC.AX is able to strike deals accretive for co, brokerage remains cautious of Indonesia's "capricious" policy regime
** Nickel producer in June said co to buy 17.5% stake in PT Teluk Metal Industry's High-Pressure Acid Leaching (HPAL) project
** Co also bought 36% interest in PT Chengsheng New Energy HPAL for an effective 18% stake in Sampala project in Indonesia
** Jefferies says acquisitions represent some of the last opportunities for co to expand attributable HPAL exposure
** HPAL project is a mining and metals-processing project that uses high-pressure sulfuric acid leaching to extract nickel and cobalt from low-grade laterite ores
** Jefferies remains wary of Indonesia's policy environment, with the country planning to centralise exports of key commodities like coal and ferroalloys to boost government revenue
** Stock up 10.2% so far this year, as of last close

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com;))