Why did Nickel Industries (ASX: NIC) tumble 8.5% today?
Market Matters | ASX Mining Stocks Analysis
Nickel Industries Ltd (ASX: NIC) fell 8.5% on Thursday, making it the worst performer on the ASX200.
What’s driving the sell-off?
The decline was triggered by the suspension of operations at its Hengjaya mine in Indonesia, following a fatal accident. Indonesia’s Ministry of Energy and Mineral Resources has launched an investigation, with operations paused pending its outcome.
Why it matters for Nickel Industries
While Hengjaya is strategically important as a feed source, it is a minor contributor to earnings (~15–25% of EBITDA). The bulk of NIC’s profits comes from its RKEF processing assets, which can continue operating by sourcing ore from third-party suppliers in Indonesia.
Nickel Industries already supplements its ore supply externally, meaning production should remain largely intact even if the mine remains offline. That said, uncertainty is the key driver of the share price weakness, with the duration and outcome of the investigation still unclear.
Market Matters view
Given the issue relates to a haul road incident rather than core processing infrastructure—and considering Indonesia benefits across the entire value chain (royalties, ownership, downstream processing)—we expect operations to normalise in time.
We view the ~8% pullback as a good risk/reward buying opportunity.
Bottom line
Nickel Industries (ASX: NIC) has more than doubled from its 2025 lows, and we see this move as a pullback within an ongoing uptrend, rather than a structural change to the investment case.
Market Matters provides Australian equities research and market insights covering ASX-listed companies, sectors, and macro trends.
