Nickel Industries posts record quarterly output, unveils $100 mln buyback plan (updated)

Nickel Industries

29/01/2024 23:33

(Recasts, adds details on quarterly production, context in
paragraphs 2-7)
       Jan 30 (Reuters) - Nickel Industries  NIC.AX , which has
operations in Indonesia, said on Tuesday it intends to start an
on-market share buyback of up to $100 million, while reporting
record quarterly output from its rotary kiln electric furnace
(RKEF) projects.
    The company's combined sales from its Hengjaya Nickel,
Ranger Nickel, Angel Nickel and Oracle Nickel RKEF projects were
$492.2 million for the three months to Dec. 31, down 6.1% from
the prior quarter, on the back of softer contract prices.
    Shares of the firm jumped as much as 15% to A$0.69 and were
set for their biggest intraday gain since Oct. 16, 2020.
    "The integrated nature of the company's operations and its
position in the bottom quartile of the class-1 and class-2 cost
curves has resulted in a significant financial outperformance
relative to its global nickel peers," Nickel Industries said.
    A sharp slide in nickel prices over the past year, driven by
a jump in Indonesian supply, has hit Australian nickel
producers, leading to mine closures, production cuts and
writedowns in recent months.
    The Australia-listed specialty miner added it has seen a
marginal improvement in nickel pig iron (NPI) prices in early
2024, compared with the multi-year lows witnessed in December.
    RKEF's production in the December quarter was 34,450 tonnes
of nickel metal, 1.8% higher than the September quarter
production. 
    The company also said it intends to return between 30% and
60% of its free cash flow to shareholders via regular dividends.
    

 (Reporting by Shivangi  Lahiri in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Shivangi.Lahiri@thomsonreuters.com;))