Nickel Industries Ltd's stock surged 5.12% during intraday trading on Wednesday, following the release of its quarterly financial results and operational updates.
The company reported a strong adjusted EBITDA from operations of US$135.6 million for the quarter. Despite geopolitical tensions in the Middle East creating volatility in sulfur and diesel markets, the company noted that its Excelsior Nickel Cobalt HPAL project had stockpiled sulfur, mitigating some cost pressure. Furthermore, the company stated that all Indonesian HPAL producers have not adopted a new limonite price, and it will continue to monitor the market situation.
While the Hengjaya mine is partially exposed to diesel price movements arising from the Middle East tensions, the company's disclosure of proactive measures and solid quarterly performance appears to have bolstered investor confidence.