Nickel Industries post mixed results as rainfall hits operations
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The news: Nickel Industries reported lower production and sales for the June quarter as 'very challenging conditions' including persistent above average rain fall hit its operations.
The numbers: Production from the company's 80% owned Indonesian RKEF operations reached 31,975 tonnes, up 0.4% quarter on quarter but down 1.8% year on year. EBITDA sank 4.8% year on year to USD41.8 million ($63.9 million).
Ore production from its mining operations totalled 2.97 million wet metric tonnes (wmt), down 4.7% quarter on quarter, but 9.2% higher than the previous year's 2.72 wmt. Ore EBITDA rose 62.9% to USD24.6 million during the quarter and jumped 105% from the year prior.
Nickel Industries shares rose 1.6% to $0.82 by 10:40am AEST.
The context: The Sydney-based mining business said its RKEF operations were negatively impacted by higher-than-average seasonal rainfall. Nickel Industries was therefore required to utilise lower grade ore stockpiles, resulting in lower levels of nickel production and higher unit cash costs.
Due to ore supply tightness stemming from the higher rainfall, nickel ore costs increased during the quarter, the company said.
Nickel Industries also noted that it increased its equity interest in the Excelsior Nickel Project by 30.25% to 44% during the quarter.
What they said: Nickel Industries' managing director Justin Werner said: "Despite very challenging conditions including persistent above average rainfall during the quarter, our mine and RKEF operations were able to perform robustly".
"August typically marks the beginning of the dry season and the company is focused on setting itself up to deliver a strong second half of the year, with July mine sales at near record levels," he said.
The source: ASX announcement
