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Declaration of 1.5c per share Final Dividend and Dividend Reinvestment Plan
Declaration of a 1.5c per share Final Dividend
Implementation of a Dividend Reinvestment Plan (DRP) with commitments to participate from the Company’s three largest shareholders and Executive Directors
The Board of Nickel Industries Limited (Nickel Industries or the Company) advises it has declared a 1.5c per share final dividend with respect to its full year 2024 financial result.
This final dividend follows the Company’s interim dividend of 2.5c per share and takes the total dividends for 2024 to 4c per share.
The Company also advises of the implementation of a Dividend Reinvestment Plan (DRP), whereby shareholders will be able to elect to subscribe for additional ordinary shares in the Company in lieu of receiving a cash payment, at an issue price of A$0.75 per share – representing a discount of 1.3% to the last closing price of A$0.76 on Friday 21 February 2025 (and a 2.8% discount to the 5-day VWAP to the same date).
In what has been a challenging last 12 months across global nickel markets, where cash-flows have been negatively impacted by compressed operating margins, the implementation of a DRP allows the Company to continue to pay a dividend while reducing the impact on existing cash reserves.
The Company’s three largest shareholders, Shanghai Decent Investment (Group) Co Ltd, PT Danusa Tambang Nusantara (UnitedTractors) and PT Karunia Bara Perkasa (Harum Energy), along with the Company’s Executive Directors,combining for more than 54% of issued shares, have all agreed to participate in the DRP.
The reduced final dividend and implementation of a DRP reflects the Board’s commitment to financial discipline and a necessary prioritisation of current cash-flows to outstanding acquisition payments for its Excelsior Nickel Cobalt (ENC) HPAL Project and debt-related interest payments and amortisation requirements.
A copy of the Company’s DRP is attached to this announcement and additional details relating to the timing of the DRP will be in the Appendix 3A.1 that will follow this announcement.
Commenting on the declaration of the Company’s Final Dividend and implementation of its Dividend Reinvestment Plan, Managing Director Justin Werner said:“We are pleased to be able to declare a final dividend of 1.5cps which brings the full year 2024 dividend to 4cps.
This result has been achieved in what has been one of the most challenging 12 months across the global nickel market with many companies experiencing closure, being placed on care and maintenance or delivering significantly reduced margins.
Our ability to pay a meaningful dividend during this period is reflective of our position at the bottom end of the cost curve and the integrated nature of our operations which provide significant cost advantages and product diversity across a broad spectrum of nickel products.2
More pleasingly has been the returns from our interest in the HNC HPAL Project over the course of 2024 which has maintained stable costs of just over US$7,000t and margins of US$5,000 - $7,000t, which bodes extremely well for the commissioning of our ENC HPAL which remains on track to deliver first nickel in the second half of 2025.
A decision was made by the board to offer shareholders the opportunity to participate in a dividend reinvestment plan (DRP) in lieu of cash should they so choose to do so.
This will enable shareholders the opportunity to elect to take shares at a time when the Company is on the cusp of delivering a number of significant value accretive milestones across 2025, including first nickel from the Company’s ENC HPAL project, an intended increase in ore sales from our Hengjaya Mine from 9 million wet metric tonnes (wmt) pato 19 million wmt pa and first ore from our recently acquired world class Sampala nickel project.
The fact that 3 of our largest shareholders and the full executive board, comprising more than 50% of the Nickel Industries share register have indicated their intention to participate in the DRP which has been priced at a 1.3% discount to the last close, demonstrates the significant share price upside we feel exists and allows the Company to retain cash and maintain a conservative balance sheet, ensuring we balance shareholder returns (which remain a focus and priority of the Board), within our current capital investment cycle which is nearing maturity (with only 2 further payments for ENC remaining).”
This announcement has been approved by the Company’s Managing Director.
i hold NIC
the DRP comes too late in the game for me ( like the BHP one did)
Declaration of a 1.5c per share Final Dividend
Implementation of a Dividend Reinvestment Plan (DRP) with commitments to participate from the Company’s three largest shareholders and Executive Directors
The Board of Nickel Industries Limited (Nickel Industries or the Company) advises it has declared a 1.5c per share final dividend with respect to its full year 2024 financial result.
This final dividend follows the Company’s interim dividend of 2.5c per share and takes the total dividends for 2024 to 4c per share.
The Company also advises of the implementation of a Dividend Reinvestment Plan (DRP), whereby shareholders will be able to elect to subscribe for additional ordinary shares in the Company in lieu of receiving a cash payment, at an issue price of A$0.75 per share – representing a discount of 1.3% to the last closing price of A$0.76 on Friday 21 February 2025 (and a 2.8% discount to the 5-day VWAP to the same date).
In what has been a challenging last 12 months across global nickel markets, where cash-flows have been negatively impacted by compressed operating margins, the implementation of a DRP allows the Company to continue to pay a dividend while reducing the impact on existing cash reserves.
The Company’s three largest shareholders, Shanghai Decent Investment (Group) Co Ltd, PT Danusa Tambang Nusantara (UnitedTractors) and PT Karunia Bara Perkasa (Harum Energy), along with the Company’s Executive Directors,combining for more than 54% of issued shares, have all agreed to participate in the DRP.
The reduced final dividend and implementation of a DRP reflects the Board’s commitment to financial discipline and a necessary prioritisation of current cash-flows to outstanding acquisition payments for its Excelsior Nickel Cobalt (ENC) HPAL Project and debt-related interest payments and amortisation requirements.
A copy of the Company’s DRP is attached to this announcement and additional details relating to the timing of the DRP will be in the Appendix 3A.1 that will follow this announcement.
Commenting on the declaration of the Company’s Final Dividend and implementation of its Dividend Reinvestment Plan, Managing Director Justin Werner said:“We are pleased to be able to declare a final dividend of 1.5cps which brings the full year 2024 dividend to 4cps.
This result has been achieved in what has been one of the most challenging 12 months across the global nickel market with many companies experiencing closure, being placed on care and maintenance or delivering significantly reduced margins.
Our ability to pay a meaningful dividend during this period is reflective of our position at the bottom end of the cost curve and the integrated nature of our operations which provide significant cost advantages and product diversity across a broad spectrum of nickel products.2
More pleasingly has been the returns from our interest in the HNC HPAL Project over the course of 2024 which has maintained stable costs of just over US$7,000t and margins of US$5,000 - $7,000t, which bodes extremely well for the commissioning of our ENC HPAL which remains on track to deliver first nickel in the second half of 2025.
A decision was made by the board to offer shareholders the opportunity to participate in a dividend reinvestment plan (DRP) in lieu of cash should they so choose to do so.
This will enable shareholders the opportunity to elect to take shares at a time when the Company is on the cusp of delivering a number of significant value accretive milestones across 2025, including first nickel from the Company’s ENC HPAL project, an intended increase in ore sales from our Hengjaya Mine from 9 million wet metric tonnes (wmt) pato 19 million wmt pa and first ore from our recently acquired world class Sampala nickel project.
The fact that 3 of our largest shareholders and the full executive board, comprising more than 50% of the Nickel Industries share register have indicated their intention to participate in the DRP which has been priced at a 1.3% discount to the last close, demonstrates the significant share price upside we feel exists and allows the Company to retain cash and maintain a conservative balance sheet, ensuring we balance shareholder returns (which remain a focus and priority of the Board), within our current capital investment cycle which is nearing maturity (with only 2 further payments for ENC remaining).”
This announcement has been approved by the Company’s Managing Director.
i hold NIC
the DRP comes too late in the game for me ( like the BHP one did)
