Heavy rain weighs on Nickel Industries June quarter
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The news: Shares in Nickel Industries were trading lower after the miner said its mining and processing operations had been affected by higher than expected rainfall.
The numbers: The Sydney-based miner now expects June quarter earnings in the range of USD75 million ($111 million) to USD80 million after high rainfall at its Hengjaya mine in Indonesia and processing operations at Indonesia Morowali Industrial Park.
This would still be an improvement on March quarter earnings of USD70.3 million, it said.
However, shares in the company were down nearly 3% to 78 cents on the ASX in early trading.
The context: Meanwhile, the company said it had further increased its holding in the Excelsior Nickel Cobalt (ENC) project by 16.5% to 44%.
ENC is targeting production of 72 kilotons per annum across the three major class one nickel products, all of which are suitable for use in the electric vehicle battery market. The project is a key plank of the company’s strategy to grow its production in Indonesia as well as increase its exposure to low carbon intensity class one nickel.
The source: ASX announcement
