Jefferies cautious on Australia's Nickel Industries' Indonesia bets, stock down

Nickel Industries

07/07/2026 02:16

Updates
** Shares of Nickel Industries NIC.AX fall as much as 3.3% to A$0.89 in early trade, their lowest since June 29, on track for fourth straight day of losses
** Jefferies says that while the nickel producer is able to strike deals accretive for co, brokerage remains cautious of Indonesia's "capricious" policy regime
** Co 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
** 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 7.5% YTD, including the day's moves

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