Nickel Industries Ltd

This report is an updated version of the report published on the 27 March 2024 at 4:00 PM AEDT.

Section 1: Company Overview and Fundamentals Insights

Nickel Industries Ltd (ASX: NIC) is a ASX listed nickel ore mining and nickel pig iron production entity with operations in Singapore and Indonesia. It holds an 80% interest in the Hengjaya Mine; 80% interest in the Ranger Nickel project; 80% interest in the Angel Nickel project; and 70% interest in the Oracle Nickel project. On 31 May 2022, the Company’s name was changed to Nickel Industries Limited from Nickel Mines Limited, which reflects the Company’s transition from explorer and miner of nickel ore to a globally significant downstream processor of nickel metal. Kalkine’s Resources Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~65.81% of the total shareholding. PT Danusa Tambang Nusantara and Decent Investment International Pte. Ltd. hold maximum stakes in the company at 20.00% and 16.40%, respectively.

1.4 Key Metrics: On the back of record production, NIC increased FY23 dividend by 12.5% YoY. Below is captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

 (Source: Company Filings)

2.2 FY23 Results Highlights: Below mentioned are some key financial highlights:   

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock jumped around 8.45% in the last 1 month and over the last 6 months, stock price has gained around 4.05%. The stock has a 52-week low and 52-week high of AUD 0.540 and AUD 1.013, respectively, and is currently trading below the 52-week mid-levels. NIC was previously covered in a report dated 28 February 2024.

 (Source: REFINITIV, Analysis by Kalkine Group)

4.2 Fundamental Valuation

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 27 March 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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