Macquarie flags 57% upside for ASX-listed Nickel Industries
AI Market Summary
Macquarie's positive note on ASX-listed Nickel Industries highlights strong 1H earnings momentum and robust Hengjaya mine volumes, partially offset by temporary water constraints at the ENC HPAL project. The update underscores both operational execution and near-term cost sensitivities (diesel, sulphur) while pointing to longer-term unit cost reduction potential via a slurry pipeline. Market impact should be idiosyncratic and limited outside the single name.
Impact level
● Low
Affected assets
NCCOGOLD2USD/USDT+0.05%
AI Insight · NCCOGOLD2USD/USDTAI Insight
● Neutral
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Macquarie analysts said Nickel Industries lifted first-half revenue 13.1% year-on-year to US$938.4 million, while net profit jumped 365.8% to US$52.5 million. The company’s ENC project has been disrupted by water-supply constraints, but it ramped to about 50% of nameplate capacity early in commissioning. At the Hengjaya mine, August nickel sales hit a record 1.6 million tonnes. Based on combined adjusted EBITDA of about US$90 million for July and August, Macquarie said the shares look undervalued and pointed to 57% potential upside.
