Nickel Industries (ASX:NIC) said that its combined adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from operations for April and May was around $80 million, according to a Wednesday Australian bourse filing.
The adjusted EBITDA from operations of $29 million for April was negatively impacted due to eight days of downtime at the Hengjaya mine in Indonesia, subcontractor standby charges, and planned maintenance of the rotary kiln electric furnace (RKEF) 720 megawatts integrated power plants requiring third-party electricity supply for the RKEF operations, the company said.
The company's RKEF operations unwound a substantial amount of working capital, and it is expected to receive around $70 million in distributions by early July.
Nickel Industries said it decided not to proceed with an investment in the ONI matte converter, citing stronger margins and carbon benefits of using high-pressure acid leach technology for class-1 nickel supply. Its largest shareholder, Shanghai Decent, refunded the $15 million option fee previously paid in 2023.