Nickel Industries, a Sydney-based miner, achieved a record output from its rotary kiln electric furnace (RKEF) projects in the June quarter. The total RKEF nickel production for the quarter ending June 30 reached 32,558 tonnes, marking an impressive 18.8% increase from the previous quarter.
The miner’s shares witnessed a positive response, with trading up 0.9% at A$0.8175, having risen as much as 1.9% earlier in the session.
Despite the remarkable production achievement, combined sales for the miner’s projects, including Hengjaya Nickel, Ranger Nickel, Angel Nickel, and Oracle Nickel, amounted to $434.3 million for the June quarter, representing an 11% decline from the previous quarter due to a fall in realised contract prices.
However, the Oracle project (ONI) in Indonesia reported a substantial increase in total nickel production, reaching 10,141 tonnes, almost double that of the prior quarter. This impressive performance is attributed to the successful commissioning of the ONI power plant in late June. As a result, the miner anticipates further production increases from its ONI operations and improved margins.
In a strategic move last month, Nickel Industries issued 857 million new shares to a unit of Indonesian construction firm United Tractors, an indirect unit of Singaporean investment holding firm Jardine Cycle & Carriage Ltd. This move could potentially boost the company’s future growth prospects and strengthen its position in the market.
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