Nickel Industries shares rise on quarterly earnings boost
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More news: Nickel Industries shares gained in early trading after the miner said it anticipates a 20% uptick in earnings for the March quarter, despite a three-day closure at its 80%-owned Oracle Nickel operations in Indonesia due to unseasonable rainfall.
Nickel Industries shares were up 2% to 64.3 cents at 10:40am AEDT, having shed more than 20% since the turn of the year.
Nickel Industries expects improved earnings despite flood damage
The news: Nickel Industries said it expects earnings for the three months to 31 March to be 20% higher than the previous quarter, despite "unseasonably high rainfall and widespread flooding".
The numbers: The nickel miner anticipates quarterly earnings from operations to be between USD85 million ($135 million) and USD90 million, representing a 20% uptick both year on year and quarter on quarter.
The improved result follows a significant increase in rainfall this month compared to March 2024. The company's Indonesia Morowali Industrial Park (IMIP) recorded 707mm of rainfall for the first 22 days of the month, 36% higher than the full month's rainfall last year.
The context: Nickel Industries said that the heavy rainfall led to nearby rivers overflowing into areas of its IMIP operations. The company consequently halted operations at its Oracle Nickel (ONI) rotary kiln electric furnace operations to reduce the risk of contamination from flood water to equipment.
ONI operations were suspended for three days to allow sediment to be cleaned, though no significant damage was recorded.
The source: ASX
