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Nickel Industries lifts 2026 quota, driving stronger outlook and margins

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The Nickel Industries Inc (ASX: NIC) share price is in focus after the company received a substantial 60% increase in its 2026 RKAB nickel ore sales quota, now set at 14.3 million wet metric tonnes (wmt). January 2026 also saw an estimated Adjusted EBITDA from Operations of around US$50 million, boosted by higher nickel prices.

What did Nickel Industries report?

  • 2026 RKAB sales quota increased to 14.3 million wmt (up from 9.0 million wmt)
  • ~60% quota increase, significantly above peer group
  • January 2026 Adjusted EBITDA from Operations of ~US$50 million
  • Nickel pig iron (NPI) margins from RKEF operations up 150% to ~US$2,800/t in January
  • ENC HPAL margins exceeded US$10,000/t in January
  • 2025 NPI production base of 124,966 Ni tonnes

What else do investors need to know?

The increased RKAB quota means Nickel Industries can continue to supply up to 6.0 million wmt of saprolite ore to its rotary kiln electric furnace (RKEF) operations and meet the 8.3 million wmt demand for its ENC HPAL limonite ore in 2026. This positions the company to maintain stable production while supporting ongoing ramp-up at the new ENC project.

Unlike many industry peers, which reportedly received less than 30% of their requested RKAB quotas, Nickel Industries’ strong environmental, social, and governance (ESG) credentials were credited for the substantial allocation. The company also plans to apply for further quota increases as 2026 progresses, especially after commissioning the ENC project.

What’s next for Nickel Industries?

Nickel Industries will submit further documentation for the 2026 RKAB approval and expects to apply for additional quota increases later in the year. The company is also focused on ramping up the new ENC HPAL project to its full annual capacity of 72,000 tonnes of nickel, aiming to diversify its nickel portfolio and reduce carbon emissions.

With expectations of higher nickel and NPI prices continuing into the year, management indicates the company is highly leveraged to market improvements, with increased EBITDA expected if price trends hold.

Nickel Industries share price snapshot

Over the past 12 months, Nickel Industries shares have risen 30%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Nickel Industries lifts 2026 quota, driving stronger outlook and margins appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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