Jefferies sees second-half working capital unwind for Nickel Industries

Nickel Industries

30/07/2025 21:10

** Analysts at Jefferies say working capital build from H1 operations is expected to unwind in H2 for Australia-listed Nickel Industries NIC.AX

** Flags expectations of working capital build despite capital deployment remaining tight amid weak nickel pig iron prices and elevated input costs

** Says Q2 results were slightly ahead of expectations due to stronger margins and beat from the Hengjaya mine

** Adds firm’s earnings from Huayue Nickel Cobalt HPAL project are set to lift as the Excelsior HPAL project enters commissioning in Jan-26; NIC’s stake to rise to 55% by April

** Jefferies keeps "hold" rating, saying current valuation looks full despite NIC’s diversified production base and positive margin profile

** PT maintained at A$0.70 vs last close of A$0.77

** Expects market participants to watch out for progress on HPAL project, working capital trends and pricing recovery in stainless-steel linked demand

** Stock down 7.9% YTD

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))