NICKEL INDUSTRIES LIMITED
ABN 44 127 510 589
Level 2, 66 Hunter Street
Sydney NSW 2000 Australia
T +61 2 9300 3311
F +61 9221 6333
E info@nickelindustries.com
W www.nickelindustries.com
17 April 2025
ASX Limited
20 Bridge Street
Sydney NSW 2000
(117 pages)
ANNUAL REPORT AND NOTICE OF AGM
Attached is Nickel Industries Limited’s (the Company) Annual Report for the year ended 31 December 2024
and a copy of the Company's Notice of Annual General Meeting to be held on 22 May 2025 at 11.00am as
being sent to shareholders today.
For further information please contact:
Richard Edwards
Cameron Peacock
Company Secretary
Investor Relations and Business Development
redwards@nickelindustries.com
cpeacock@nickelindustries.com
+61 2 9300 3311
+61 439 908 732
ANNUAL REPORT
2024
NICKEL INDUSTRIES
and its controlled entities
ABN 44 127 510 589
Contents
Chairman’s Letter
1
Review of Operations
2
Corporate Governance Statement
15
Directors’ Report
16
Lead Auditor’s Independence Declaration
32
Consolidated Statement of Profit or Loss and Other Comprehensive Income
33
Consolidated Statement of Financial Position
34
Consolidated Statement of Changes in Equity
35
Consolidated Statement of Cash Flows
36
Notes to the Consolidated Financial Statements
37
Consolidated Entity Disclosure Statement
80
Directors’ Declaration
81
Independent Auditor’s Report
82
Additional ASX Information
88
Corporate Directory
90
Nickel Industries Annual Report 2024
Hengjaya Mine nursery
Annual Report 2024 Nickel Industries 1
Chairman’s Letter
The year proved to be a challenging one across global
nickel markets with slower growth in demand for electric
vehicles and concerns of oversupply of nickel from
Indonesia combining to result in compressed margins
across the nickel sector.
In recent years there has been a structural change
in global nickel markets, with Indonesia now firmly
established as the predominant supplier of nickel
globally. Ongoing advances in processing technologies
have opened up Indonesia’s huge natural endowment of
lateritic ores to nickel markets that were previously reliant
on dwindling sulphide ores. This, combined with Chinese-
led construction and project execution capabilities, has
resulted in many established western nickel producers
being unable to compete leading to broad shutdowns
and the abandonment of previously announced projects.
Nickel Industries has positioned itself within this industry
as a low-cost, diversified nickel producer. Our ability to
vertically integrate our operations, in collaboration with
our partner, Tsingshan, has us uniquely positioned among
industry peers to fund, build and operate though the
commodity cycle and consolidate our status as a globally
significant nickel producer.
Having already established ourselves as the world’s
largest listed pure-play nickel producer, we look forward to
the completion and commissioning of our Excelsior Nickel
Cobalt (ENC) HPAL Project in the second half of 2025.
With a nameplate capacity of 72kt nickel per annum, ENC
will further expand our MHP production profile in addition
to adding nickel cathode and sulphate to our product
offering. ENC is expected to operate with materially
higher operating margins, while also significantly reducing
our carbon footprint for every tonne of nickel produced.
Our mining operations have continued to go from strength
to strength. A more stringent renewal process for RKAB
mining licences in Indonesia was a dominant macro theme
throughout 2024 and served to underpin the importance
of controlling large quantities of insitu resources and
highlights the benefits of the vertical integration of our
mining and processing operations.
The Company completed a direct haul road from our
Hengjaya Mine to the IMIP in 2023 to fully unlock the
strategic value of that resource. In 2024 we signed
agreements for the acquisition of the Sampala Project, an
additional series of contiguous mining licences in close
proximity to the IMIP. This acquisition has the potential to
more than double our contained nickel tonnes and ensure
we become fully self-sufficient in supplying both our RKEF
and HPAL operations. Self-sufficiency in ore resources will
deliver important operational and strategic benefits to our
business and largely immunise us against the future nickel
ore price movements, which are the largest input cost to
our processing operations.
Once again, I would like to thank our management team
led by Managing Director Justin Werner for their ongoing
hard work and dedication to growing and securing the
long-term viability of our operations. In the face of a
challenging macro environment. we are continually
seeking to protect our business from external shocks,
while at the same time promoting responsible and
sustainable mining practices in Indonesia. Looking to the
year ahead we have much to be enthused about. Having
continued to grow our mining and processing production
capacity during a time where much of the industry has
been unable to navigate the current price environment,
we are extremely well positioned to capitalise on any
future improvement in pricing and deliver enhanced
returns for our shareholders.
Yours sincerely
Norman Seckold
Executive Chairman
Dear Fellow Shareholders,
It is with great pleasure I present to you
the Nickel Industries Limited Annual
Report for 2024.
2
Nickel Industries Annual Report 2024
Principal Activities and Review of Operations
(All amounts in US$ unless otherwise stated)
Nickel Industries Limited (the Company or Nickel
Industries) was incorporated on 12 September 2007,
under the laws of the State of New South Wales, Australia.
Nickel Industries and its controlled entities (together
the Group) has become a globally significant, low-cost
producer of nickel pig iron (NPI), a key input in the
production of stainless steel. Additionally, the Group
has diversified into the production of nickel matte and
acquired interests in high pressure acid leach (HPAL)
projects, producing mixed hydroxide precipitate (MHP)
for use in the electric vehicle (EV) supply chain. The
Group’s principal operations, located in Indonesia, are
the Hengjaya Nickel, Oracle Nickel and Ranger Nickel
rotary kiln electric furnace (RKEF) projects located
within the Indonesia Morowali Industrial Park (IMIP), the
Angel Nickel RKEF Project within the Indonesia Weda
Bay Industrial Park (IWIP) and the Hengjaya Mine, a
large tonnage, high grade nickel laterite deposit in close
proximity to the IMIP. At year end, the Company held
an 80% interest in each of the Angel Nickel, Hengjaya
Nickel, Oracle Nickel and Ranger Nickel projects and
the Hengjaya Mine, a 10% interest in the Huayue Nickel
Cobalt HPAL project (HNC) and a 44% interest in the
Excelsior Nickel HPAL project (ENC).
The loss of the Group for the year ended 31 December
2024 after income tax was $189,796,366 (31 December
2023: $176,203,376 profit). The loss includes post tax
impairment charges of $204,695,078.
Review of Operations
During the year ended 31 December 2024 significant milestones were achieved as set out below.
•
The Company’s processing operations produced a combined 135,602 tonnes of nickel metal.
125,518 tonnes of this was nickel in NPI, 1,743 tonnes was nickel in nickel matte and 8,341 tonnes
of nickel in MHP. Adjusted EBITDA1 from the year was $187.2M for RKEF operations and $25.3M
from the Company’s 10% interest in the HNC HPAL and its share of gain in equity accounted
investees.
•
A record 19,028,181 wet metric tonnes (wmt) of nickel ore were mined at the Hengjaya Mine
(5,017,222 wmt of saprolite ore and 14,010,959 wmt of limonite ore) and 9,000,000 wmt of nickel
ore were sold. Adjusted EBITDA from the Hengjaya Mine for the year was $100.9M.
•
The Company completed the acquisition of a further 30.25% equity interest in the ENC Project
by cash payment of $695.8M, taking the Company’s interest to 44%.
•
In August 2024, the Company signed definitive agreements for the acquisition of the Sampala
Project, three contiguous nickel IUPs (mining licences) covering 6,654 hectares and published
an initial Mineral Resource for the project.
•
In September 2024 the Company completed the acquisition of an initial 51% of the Siduarsi
project and published an initial Mineral Resource for the project.
•
In January 2024, the Company declared a final dividend for 2023 of A$0.025 per share, being
a distribution of A$107.1M ($69.9M). In August 2024, the Company declared a A$0.025 interim
dividend, totalling A$107.1M ($72.8M).
1
Adjusted EBITDA is defined by the Company as profit/(loss) for the period, plus depreciation and amortisation costs, plus impairment, plus
foreign exchange gains/(losses), plus interest income/(expenses), plus withholding tax expense. This non-IFRS financial measure, which is
referred to throughout the directors’ report, is used internally by management to assess the performance of the Group’s business and make
decisions on allocation of resources. This non-IFRS measure has not been subject to audit or review.
Annual Report 2024 Nickel Industries 3
Group Safety
The Company-wide lost time injury frequency rate (LTIFR)
for 2024 was 0.11, with 2 lost time injuries (LTI) recorded
during the year. The total recordable injury frequency
rate (TRIFR) for 2024 was 1.43, with 3 medical treatment
injuries and 22 first aid treatment injures recorded during
the year, against 17.4 million work hours.
The Hengjaya Mine has recorded over 18.2 million work
hours since the last reported LTI in November 2021. The
Company will continue to strengthen its ‘best practice’
mining and processing standards. All the operations are
focused on safety training, risk assessments and change
management. The Company is committed to continuous
improvement in all operations and will continue to
work collaboratively with stakeholders to drive positive
environmental, safety, social, and governance outcomes.
Review of Operations
Nickel Industries’ processing and mining operations
4
Nickel Industries Annual Report 2024
RKEF OPERATIONS
(80% indirect interest held by Nickel Industries)
The Company’s RKEF operations delivered record production of 1,042,655 tonnes of NPI with 127,261 tonnes of nickel
metal, just below 2023’s record of 128,259 nickel metal. The change in production and grade was predominately
driven by the Company shifting HNI from nickel matte in 2023 to NPI in 2024. RKEF sales were negatively impacted
by licencing and weather issues in the first half of the year, partially offset by a full year of operations at ONI. Adjusted
EBITDA from RKEF operations was $187.2M for the year ended 31 December 2024 (31 December 2023: $343.4M). The
decrease in Adjusted EBITDA was driven by a 12.5% decrease in sale price, partially offset by 10.2% decrease in cash
costs, predominately driven by lower nickel ore and coal costs, as Group RKEF cash costs return to 2021 levels.
Production
Units
2023
2024
NPI production
tonnes
954,014
1,042,655
Nickel grade
%
13.4
12.2
Total nickel production
tonnes
128,259
127,261
Cash costs
$/t Ni
11,385
10,223
Sales
Units
2023
2024
Wtd. Avg contract price
$/t Ni
14,021
12,265
Sales
tonnes
128,327
128,418
Revenue
$M
1,810.8
1,575
Adjusted EBITDA
$M
343.4
187.2
Adjusted EBITDA p/t sold
$/t Ni
2,676
1,458
RKEF production
Review of Operations
Annual Report 2024 Nickel Industries 5
RKEF operating cash costs
Review of Operations
Nickel Industries’ RKEF operations control room
6
Nickel Industries Annual Report 2024
HPAL OPERATIONS
Huayue Nickel Cobalt Project
(10% indirect interest held by Nickel Industries)
During the year, the Huayue Nickel Cobalt (HNC) Project produced 83,410 tonnes of nickel and 7,687 tonnes of cobalt in
mixed hydroxide precipitate (MHP). Nickel Industries’ attributable share of HNC production was 8,341 tonnes of nickel
and 769 tonnes of cobalt.
Whilst HNC undertakes its own sales of MHP, offtake is also distributed to Tsing Creation for sale. The Adjusted EBITDA
of HNC for the year on 100% basis (with Nickel Industries holding a 10% interest) was $351.3M2. The Adjusted EBITDA
for Tsing Creation (‘TC’) (with Nickel Industries holding a 100% interest) was $11.5M and the Company’s 10% profit from
equity accounted investment in HNC of $13.9M.
Key reporting metrics
Units
2023
2024
Attributable production (10%)
Ni tonnes
2,868
8,341
Cash cost
$/t Ni
N/A
7,115
TC Adjusted EBITDA/HNC equity accounted profit
$M
5.2
25.4
2
At a group level the Company is required to report in EBITDA the profit/loss of an equity accounted investee as EBITDA. This amount includes
financing expenses and amortisation of the fair value step up in the Company’s investment in HNC.
Review of Operations
Nickel Industries’ HPAL operations
Annual Report 2024 Nickel Industries 7
HPAL CONSTRUCTION
Excelsior Nickel Cobalt Project
(44% indirect interest currently held by Nickel Industries)3
3
The Company is scheduled to move to a 55% equity interest in ENC by 1 October 2025.
In April 2024, the Company completed the acquisition
of a further 13.75% equity interest in the ENC Project by
cash payment of US$316.3M. This was followed in July
2024 by the acquisition of a further 16.5% equity interest,
increasing the Company’s equity interest to 44%, via a
cash payment of $379.5M (which was made early to assist
in the acceleration of the construction and commissioning
of the Project’s nickel cathode and sulphate plants).
Construction at the ENC Project continued to make
strong progress throughout the year. By year end all
three autoclaves and the absorption tower were on site.
The circular pads and mounts have been prepared to
install the thickeners, reactors and storage tanks in the
HPAL plant during the first quarter of 2025. Supporting
infrastructure has been installed in preparation for the
crystallisers and electrolysis cells.
Review of Operations
ENC sulphate and cathode refinery construction ahead of schedule
ENC HPAL construction progressing well
8
Nickel Industries Annual Report 2024
MINING OPERATIONS
Hengjaya Mine
(80% interest held by Nickel Industries)
The Company’s Hengjaya Mine delivered recorded production of 19,028,181 wmt of nickel ore (5,017,222 wmt of saprolite
and 14,010,959 wmt of limonite), an increase of 42.0% versus 2023’s 13,401,289 wmt and record sales of 9,000,000
wmt under the existing Rencana Kerja dan Anggaran Biaya (RKAB) annual mining quota. The change in nickel ore grade
sold was predominately driven by the Company increasing the proportion of limonite sales in 2024. The result of this
increased production and sales was an EBITDA contribution of $100.9M from the Hengjaya Mine in 2024, compared to
the $87.9M EBITDA contribution from the mine in 2023.
Key reporting metrics
Units
2023
2024
Saprolite mined
wmt
3,832,833
5,017,222
Limonite mined
wmt
9,568,456
14,010,958
Nickel ore mined
wmt
13,401,289
19,028,180
Overburden mined
BCM
1,338,464
2,162,342
Strip ratio
BCM/wmt
0.10
0.11
Nickel ore sold
wmt
5,593,908
9,000,000
Nickel ore grade
%
1.46
1.38
EBITDA
$M
87.9
100.9
Review of Operations
Nickel Industries’ Hengjaya Mine operation
Annual Report 2024 Nickel Industries 9
Sampala Project
(Nickel Industries with rights to acquire a 60% interest)
The Company announced the signing of binding
acquisition agreements for the Sampala Project in
September 2024. The Sampala Project consists of three
highly prospective, advanced and contiguous nickel-
cobalt projects covering 6,654 hectares (ha), with an
initial JORC-compliant Mineral Resource of 187 million
dry metric tonnes (dmt) at 1.2% nickel and 0.09% cobalt
(containing 2.3 million tonnes of nickel and 0.2 million
tonnes of cobalt) covering just 900ha4.
The IUPs are located in close proximity (just 36.9km)
to the Company’s existing RKEF and HPAL operations
within the IMIP and immediately north of Sulawesi
Cahaya Minerals, which is 49% owned by the Company’s
largest shareholder, Shanghai Decent, and has reported
resources of 1,139 million dmt5 at 1.2% nickel for 13.9
million tonnes of contained nickel metal, making it one of
the world’s largest known nickel resources. Development
of the Sampala Project will allow the Company to become
self-sufficient in nickel ore supply for its IMIP downstream
operations.
During 2024, a total of 48,646 metres (1,844 holes) were
drilled, covering an area of 1,600ha on mostly 100m
spacing. Drilling results returned peak nickel grades of
5.76% in limonite and 7.41% in saprolite, as well as a peak
cobalt grade of 1.37%.
Further details on the Sampala acquisition can be found
on the Company’s website (ASX Announcement – 17
September 2024) and (ASX Announcement – 5 February
2025).
4
55 million dmt Indicated at 1.1% Ni and 132 million dmt Inferred at 1.3% Ni. Nickel Industries is not aware of any new information that materially
affects the information included in the relevant market announcement and all materials assumptions and technical parameters continue to
apply.
5
11 million dmt Measured, 280 million dmt Indicated, 849 million dmt Inferred (cut-off grade 0.7% Ni).
6
16 million dmt Indicated at 1.1% Ni and 36 million dmt Inferred at 1.1% Ni. Nickel Industries is not aware of any new information that materially
affects the information included in the relevant market announcement and all materials assumptions and technical parameters continue to
apply.
Siduarsi Project
(51% interest held by Nickel Industries, with rights to
move to 100%)
In September 2024, the Company completed the
acquisition of an initial 51% interest in the Siduarsi Project
for four million shares in the Company and the meeting
of expenditure earn-in requirements, in-line with the
MoA signed in September 2021. At the same time the
Company announced an initial JORC-compliant Mineral
Resource of 52 million dmt6 at 1.1% nickel and 0.1% cobalt
(561 thousand tonnes of contained nickel metal and 31
thousand tonnes of cobalt) within a 1,614ha area has been
estimated.
The Siduarsi Project CoW covers 16,470ha along geo-
tectonic strike from the Ramu nickel-cobalt project in
neighbouring Papua New Guinea. Over 167km of ground
penetrating radar (UltraGPR) with 200m spacing, covering
1,850ha has been completed to date. The considerable
exploration has indicated an average limonite thickness of
3.2m (maximum 18m) and average saprolite thickness of
9.4m (maximum 32m). There has been 31,066m of drilling
in 2,078 holes completed and 33,182 sample assays
received from the Siduarsi CoW. The drilled areas include
peak grades of 3.7% nickel and 0.8% cobalt.
Further details on the Siduarsi acquisition can be found
on the Company’s website (ASX Announcement – 23
September 2024).
Review of Operations
Exploration drilling at the Sampala Project
10
Nickel Industries Annual Report 2024
SAFETY, ENVIRONMENT, COMMUNITY AND SOCIAL GOVERNANCE
HNC CO2 intensity
The HNC HPAL Project, in which the Company holds a 10% interest has released a review of its carbon intensity. As
determined by Skarn Associates Limited, HNC’s carbon intensity is only 6.9 tonnes of CO2 per tonne of nickel produced
(Scope 1 & 2), positioning it as one of the lowest carbon emitting nickel processors globally, below most remaining
Australian operations. The ENC Project will replicate the HNC Project’s MHP product, with the addition of nickel
sulphate and cathode. With the assistance of the SESNA solar project, our target is for ENC to significantly improve on
this CO2, intensity as part of our efforts to achieve the Company’s stated emission targets.
EV haul truck fleet
Following the successful trial of EV haul trucks at the Hengjaya Mine in 2023, the Company has continued to work
towards scaling up our EV truck fleet in 2024. The EV truck fleet will include a battery charging and change-out facility.
University Scholarship Program
The Company, in partnership with Hasanuddin University, established a university scholarship program as part of
our broader ongoing social initiatives within the local communities in which it operates. The scholarship program will
provide full financial support to 10 local indigenous students per year from the Central Sulawesi, North Maluku and West
Papua Provinces to pursue 4-year undergraduate degrees across the fields of metallurgical engineering, environmental
engineering and mining engineering. It is envisaged this program will help foster the next generation of leaders in the
local mining industry.
Students’ first day of university
University scholarship selection test in June in Morowali
Review of Operations
EV trucks in operation at Hengjaya Mine
Annual Report 2024 Nickel Industries 11
Conservation Area
During the September quarter, the Hengjaya Mine in Morowali received formal endorsement from the Central
Sulawesi Natural Resources Conservation Agency to develop a high conservation biodiversity area within the Hengjaya
Mine mining concession. The conservation area will further solidify Nickel Industries as a leader in responsible and
sustainable mining in Indonesia.
Preparation for the establishment of the in-situ biodiversity conservation zone started in 2022, with research focusing
on biodiversity hotspots around the Hengjaya Mine mining concession to determine the locations of high conservation
value. Within the Hengjaya Mine concession, the Company has selected an initial area of 197ha, which includes a primary
forest of large trees with a relatively closed canopy. This area will not only protect and maintain the biodiversity of flora
and fauna but also help it grow for years to come.
ESG Awards
During the period, the Company’s Hengjaya Mine received the top Community Social Responsibility Award and the
Indonesia Social Responsibility Award for preparing school students for the industry. Nickel Industries was the recipient
of the Best Overall Sustainable Performance Award at the 2024 World CSR Day Indonesia Leadership Awards, held
in Jakarta on 7 October 2024. The Indonesia Leadership Awards serve to recognise leaders who have implemented
positive change to support sustainable growth. In October, the Company was also honoured with the Best Climate
Reporting & Transparency Award at the 2024 ESG GRIT Awards. This award recognises the Company’s transparency in
environmental reporting and its approach to climate action. In December, the Company’s dedication to green energy
and sustainability was recognised at the Indonesia Stock Exchange Channel Anugerah Inovasi Indonesia 2024. This
achievement reflects the Company’s commitment to supporting the sustainable energy transition in Indonesia.
Award ceremonies in 2024
Review of Operations
12
Nickel Industries Annual Report 2024
CORPORATE
Increase to a 44% equity interest in ENC HPAL Project
In April 2024 completed the acquisition of an additional 13.75% interest in the ENC Project for $316.3M, increasing its
equity interest in ENC to 27.5%. In July 2024 the Company completed the acquisition of a further 16.5% equity interest
for $379.5M, increasing its interest in ENC to 44.0%. The payment of $379.5M was made ahead of the scheduled 1
October 2024 payment date to assist in the acceleration of the construction and commissioning of the nickel cathode
and sulphate plants.
The acquisition payment schedule for ENC is set out below.
Date
$M
Equity acquired
Cumulative equity
Invested to date
1,012.0
44.0%
44.0%
By 1 July 2025
126.5
5.5%
49.5%
By 1 October 20257
126.5
5.5%
55.0%
Total
1,265.0
55.0%
Successful syndication of $400M BNI loan facilities
During the period, the Company announced the successful syndication of its $400M of bank loan facilities provided by
PT Bank Negara Indonesia (Persero) Tbk (BNI). The loan facilities, established with BNI in October 2023 to support the
Company’s ENC funding obligations, were successfully syndicated across an additional eight banks comprising a mix
of Asian, European and global banking institutions. This broad-based support is indicative of the Company’s growing
regional reputation and an industry leader in responsible and sustainable mining in Indonesia.
Successful establishment and syndication of $250M loan facilities
During the period, the Company announced the successful syndication of its $250M of bank loan facilities provided BNI
and DBS Bank LTD (DBS). The loan facilities, established with BNI and DBS in May 2024 to support the Company’s ENC
funding obligations, were successfully syndicated across a mix of banking institutions from Asia, Europe, the Middle
East and India.
Declaration and payment of maiden interim and final dividends
In January 2024, the Company declared a final dividend for 2023 of A$0.025 per share, being a distribution of A$107.1M
($69.9M). In August 2024, the Company declared a A$0.025 interim dividend, totalling A$107.1M ($72.8M).
7
The latter of this date and commissioning of line 1 of the ENC Project.
Review of Operations
Annual Report 2024 Nickel Industries 13
MINERAL RESOURCES STATEMENT
Mineral Resource in accordance with JORC Code 2012
Project
Mineral Resource
Category
Million
wmt
Million
dmt
Ni
(%)
Co
(%)
Nickel metal
(million tonnes)
Report
date
Hengjaya
Mine
Measured
134
85
1.3%
0.1%
1.1
Sep-22
Indicated
205
130
1.2%
0.1%
1.6
Inferred
134
85
1.2%
0.1%
1.0
Total
473
300
1.2%
0.1%
3.7
Sampala
Project
Indicated
99
55
1.1%
0.1%
0.6
Aug-24
Inferred
218
132
1.3%
0.1%
1.7
Total
317
187
1.2%
0.1%
2.3
Siduarsi
Project
Indicated
25
16
1.1%
0.1%
0.2
May-24
Inferred
58
36
1.1%
0.1%
0.4
Total
84
52
1.1%
0.1%
0.6
The above nickel resources use a cut-off grade of 0.8% nickel. Figures shown represent 100% of total resources at this
time. Nickel Industries owns 80% of the Hengjaya Mine, 51% of the Siduarsi Project with definitive agreements to move
to 100% in 2025 and definitive agreements to acquire 60% of the Sampala Project in 2026.
Key updates from previous reporting period
The Company has acquired the Siduarsi Project and signed definitive agreements to acquire the Sampala Project. Since
September 2022, Hengjaya Mine has sold 16.5m wmt at 1.42% nickel grade and drilled 8,775 infill holes (215,431 metres)
to facilitate mine planning. Nickel Industries is not aware of any new information that materially affects the information
included in the Mineral Resource Statement above and all material assumptions and technical parameters continue to
apply.
Governance and internal controls
The Mineral Resource estimates have been prepared by external consultants independently from the Company.
Exploration at our projects follows standard operating procedures in the field to ensure JORC Code Compliance. This
includes photography of all drill cores for future reference. Drill core samples are sent to the Hengjaya Mine internal
laboratory or independent certified laboratories for analysis. All assays are subject to stringent quality assurance
and control protocols. A program of data verification is included in all exploration programs to confirm the validity of
the exploration and assay data. Nickel ore sales are weighed at the mining concession weighbridge and again at the
customers location to ensure all products sent are delivered and can be reconciled. Additionally, surveys are completed
monthly to audit the production volumes.
Competent Persons Statement
The information in this report that relates to Mineral Exploration and Mineral Resources is based on data compiled
by Daniel Madre of PT Danmar Explorindo. Mr Madre is a member of the Australian Institute of Mining and Metallurgy
(AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activities which are being undertaken to qualify as a Competent Person as defined in the
2012 edition of the “Australian Code for Reporting Mineral Resources and Ore Reserves”. Mr Madre is an independent
consulting geologist and consents to the inclusion of the matters based on this information in the form and context in
which it appears. Mr Madre has more than 20 years’ experience in exploration and mining of nickel laterites in Indonesia.
Review of Operations
14
Nickel Industries Annual Report 2024
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
Introduction
Nickel Industries recognises its responsibility to
support the global effort to transition to a low-carbon
economy whilst ensuring that its operations reduce
its exposure to climate risks. The Company adopts
the TCFD recommendations to ensure transparent,
reliable, and actionable climate disclosures, reinforcing
our commitment to sustainable nickel production and
environmental stewardship. In the future, the Company
will align its report with the International Financial
Reporting Standards for Climate-related Disclosures
(IFRS S2) and the Australian Accounting Standards Board
for Climate-related Disclosures (AASB S2).
Governance
The Sustainability Committee at Nickel Industries
oversees climate-related risks and opportunities,
reporting to the Board of Directors quarterly.
The Committee monitors and integrates climate
considerations into strategic decisions and risk
management whilst engaging external experts when
required. The Company is committed to fostering an
environmentally conscious culture through leadership,
training, and stakeholder engagement. Employees,
contractors, and suppliers receive climate awareness
education to ensure the sustainability strategy is
embedded at every operational level.
The Committee at Nickel Industries Limited derives its
governance and authority from the Board of Directors,
with its responsibilities outlined in the Sustainability
Committee Charter. It is tasked with supporting the Board
in formulating, implementing, and overseeing sustainability
policies, ensuring these align with the Company’s long-
term ESG commitments. The Committee provides a critical
advisory role, making recommendations to the Board on
sustainability strategies and disclosure practices. The
Committee possesses several key authorities, including
the ability to conduct evaluation into sustainability-related
matters and retain external consultants or legal advisors
at the Company’s expense. Additionally, it has the right to
request information from employees and external parties,
ensuring transparency and accountability in sustainability
reporting. To maintain oversight, the Committee meets at
least four times a year, with additional meetings convened
as needed to address emerging ESG issues.
In alignment with the TCFD recommendations, Nickel
Industries ensures that climate-related risks and
opportunities are embedded in its governance structure.
The Committee, along with senior management, plays a
central role in monitoring and reporting on climate risk
strategies. These risks are integrated into investment
decisions, operational planning, and long-term
sustainability initiatives. Management is responsible for
identifying and mitigating physical risks, such as extreme
weather events, and transition risks, including regulatory
changes like carbon taxation.
Strategy
Nickel Industries is committed to supporting the global
transition to a low-carbon economy while effectively
managing climate risks and taking advantage of
opportunities. The Company has conducted climate
scenario analysis to assess the resilience of its strategy
under different climate futures. The Company evaluates
both physical and transition risks by referencing
projections from the Intergovernmental Panel on Climate
Change (IPCC) and the International Energy Agency
(IEA), incorporating models such as the Representative
Concentration Pathway (RCP) 4.5 and 8.5 scenarios as
well as the IEA’s Sustainable Development Scenario.
Over the short term, the Company has developed a
comprehensive greenhouse gas (GHG) inventory, identified
key emission sources (coal combustion and electricity
use), and prioritised energy efficiency improvements. In
2024, the Hengjaya Mine installed solar panel capacity
was 396kWp with a 250kWh storage system. This solar
energy system currently supplies ~20% of the mine’s
electricity demand, reducing its reliance on fossil fuels and
contributing to a lower carbon footprint. In conjunction
with the solar program, the mine has initiated a plan to
reduce energy use by transitioning to EV trucks in a staged
approach. During 2024, 10 EV trucks were integrated into
the mining operations to reduce GHG emissions. The
Oracle Nickel RKEF improved resource efficiency in energy
production by substituting traditional coal with recycled
furnace gas for its dryer and grinding operations, reducing
coal consumption by more than 10kt a year. Hengjaya and
Ranger Nickel RKEF’s transitioned to electric loaders,
replacing traditional diesel-powered models. The electric
loaders are recharged at designated stations within the
facilities and are used for loading and unloading of ore.
The electric loaders use 3.6 times less energy than diesel-
powered ones, reducing fuel consumption.
Our medium-term strategy focuses on the
implementation of carbon-related regulations, proactively
investing in renewable energy (200 MW solar project), and
optimising low-carbon technologies to meet emerging
standards. The HPAL technology was adopted to
process nickel ores with significantly reduced emissions
and energy intensity by using power from the captive
waste heat boiler system from the acid plant. The new
technology can process limonite nickel ore, which can
be transported by slurry pipeline rather than traditional
truck hauling methods. The ENC HPAL expansion alone
is expected to reduce the Group’s emissions intensity by
approximately 40%.
Our long-term strategy focuses on net-zero emissions
by 2050 by increasing renewable energy capacity, fully
integrating sustainability into the Company’s operational
framework, substituting fossil fuels in nickel smelting
through innovative low-carbon technologies. The
Company is also focused on expanding water recycling
and improving waste management.
Risk Management
Nickel Industries employs a structured climate risk
identification and assessment process that integrates
scientific data, regulatory trends, and stakeholder
engagement. The Company collaborates with experts
to refine its risk identification framework and ensure
Review of Operations
Annual Report 2024 Nickel Industries 15
alignment with TCFD recommendations. Nickel Industries
has assessed the materiality of climate-related risks by
conducting scenario analysis and modelling. These risks
include both physical risks, such as extreme weather
events and long-term climate shifts, and transition risks,
such as carbon pricing, regulatory changes, and shifts in
market demand. In short, the risk identification process
involves:
•
GHG Emissions Inventory & Materiality Analysis: the
Company maps its emissions profile and prioritises
financially significant risks, particularly those related
to coal combustion and electricity consumption. This
inventory helps quantify and track Scope 1 and Scope
2 emissions;
•
Scenario-Based Risk Assessments: Nickel Industries
applies IPCC RCP 4.5 & 8.5 scenarios to evaluate
physical risks, such as temperature increases,
extreme weather, and water availability challenges at
operational sites. The Company integrates IPCC and
IEA WEO models to assess physical and transition
risks under different climate scenarios; and
•
Regulatory and Market Risk Tracking: the Company
monitors climate-related policies, carbon pricing
mechanisms, and technological shifts in the nickel
sector to anticipate financial impacts. The Company
is developing a decarbonisation roadmap, which
includes renewable energy integration, such as a
200MWp solar project at IMIP.
Physical Risk
Nickel Industries operates in regions vulnerable to
climate-related changes, including rising temperatures,
shifting precipitation patterns, and extreme weather
events. The scenario analysis for IMIP and IWIP sites
indicates a projected temperature increase of 0.6°C,
which may impact working conditions and water resource
demand. Meanwhile, precipitation levels are expected
to increase in North Maluku but decrease in Central
Sulawesi, posing potential challenges for water availability.
Some other physical risks are as follows:
•
Extreme weather events: continuous monitoring,
data collection, and annual risk assessments ensure
resilience against adverse weather conditions. The
Company has implemented water management plans,
including monitoring and recycling initiatives;
•
Temperature and precipitation changes:
implementation of adaptive measures to safeguard
operational continuity, such as advanced cooling
systems and efficient water management practices.
The Company has implemented Infrastructure
resilience measures, such as flood control and
emergency response planning; and
•
Sea-level rise and natural disasters: infrastructure
reinforcement and contingency planning to protect
coastal operations. The Company has implemented
operational contingency strategies, ensuring minimal
disruptions from extreme weather.
Transition Risk
Nickel Industries recognises the financial and regulatory
risks posed by the global transition to a low-carbon
economy. In the 2°C scenario, the Company anticipates
increased regulatory pressure, carbon pricing, and the
need for technological adaptation in its energy-intensive
nickel production processes. Some other transition risks
that the Company considers include:
•
Policy & Regulation: proactive compliance with
emerging carbon taxes and emissions policies;
•
Technology: investment in EV trucks, renewable
energy projects, and alternative fuel use to ensure
long-term sustainability;
•
Market & Reputation: strengthening positioning in
low-carbon nickel supply for EV batteries, reinforcing
commitments to responsible mining practices.
The risks above are also considered as opportunities
by the Company. Hence, Nickel Industries is leveraging
market opportunities in the global shift towards electric
vehicle (EV) battery production. The rising demand for
battery-grade nickel aligns with both the 2°C transition
scenario and the Company’s expansion into HPAL
projects, which produce lower-carbon nickel for EV supply
chains.
Overall, once risks are identified, they are evaluated based
on their financial and operational significance, using
a quantitative and qualitative assessment framework
that factors in the probability and severity of impact,
adaptation and feasibility, as well as strategic response
options, such as renewable energy deployment and
decarbonisation pathways. Nickel Industries integrates
climate-related risks into its corporate risk management
framework by embedding sustainability into investment
decisions, operational planning, and governance
structures.
Metrics and targets
Nickel Industries acknowledges its responsibility to
support the global transition to a low-carbon economy
while mitigating climate risks across its operations. The
Company is committed to a 50% reduction in carbon
intensity by 2035 and achieving net-zero emissions by
2050, using 2022 as a baseline (64 tCo2-e/t/Ni).
CORPORATE GOVERNANCE STATEMENT
The Board is committed to maintaining standards of
Corporate Governance. Corporate Governance is about
having a set of core values and behaviours that underpin
the Company’s activities and ensure transparency, fair
dealing and protection of the interests of stakeholders.
The Company has reviewed its corporate governance
practises against the Corporate Governance Principles
and Recommendations (4th edition) published by the ASX
Corporate Governance Council.
The Corporate Governance Statement is dated as at
24 February 2025, reflecting the corporate governance
practises throughout the 2024 financial year and was
approved by the Board of Directors of the Company
on 24 February 2025. A description of the Company’s
current corporate governance practises is set out in the
Company’s Corporate Governance Statement, which can
be viewed at
www.nickelindustries.com.au/corporate-governance/.
Review of Operations
16
Nickel Industries Annual Report 2024
The Directors present their report together with the financial report of Nickel Industries Group, being Nickel Industries
Limited (‘the Company’ or ‘Nickel Industries’) and its controlled entities (‘the Group’), for the year ended 31 December
2024 and the auditor’s report thereon:
DIRECTORS
The names and particulars of the Directors of the Company at any time during or since the end of the year are:
Norman Alfred Seckold – Executive Chairman
Executive Chairman to 16 April 2018 and again from 31 December 2023. Director since 12
September 2007.
Norman Seckold graduated with a Bachelor of Economics degree from the University of Sydney
and has spent more than 40 years in the full time management of natural resource companies,
both in Australia and overseas.
Mr Seckold has been the Chairman of a number of publicly listed companies including Moruya
Gold Mines (1983) N.L., which acquired the Golden Reward heap leach gold deposit in South Dakota, USA, Pangea
Resources Limited, which acquired and developed the Pauper’s Dream gold mine in Montana, USA, Timberline Minerals,
Inc. which acquired and completed a feasibility study for the development of the MacArthur copper deposit in Nevada,
USA, Perseverance Corporation Limited, which discovered and developed the Nagambie gold mine in Victoria, Valdora
Minerals N.L., which developed the Rustler’s Roost gold mine in the Northern Territory and the Ballarat East Gold Mine
in Victoria, Viking Gold Corporation, which discovered a high grade gold deposit in northern Sweden, Mogul Mining
N.L., which drilled out the Magistral and Ocampo gold deposits in Mexico and Bolnisi Gold N.L, which discovered and
developed the Palmarejo and Guadalupe gold and silver mines in Mexico.
Mr Seckold is currently Chairman of ASX-listed companies Alpha HPA Limited, Sky Metals Limited and Fulcrum Lithium
Ltd.
Justin Charles Werner – Managing Director
Director since 23 August 2012.
Mr Werner holds a Bachelor of Management from the University of Sydney and has been involved
in the mining industry for 20 years. He was a founding partner of PT Gemala Borneo Utama, a
private Indonesian exploration and mining company, which developed a heap leach gold mine in
West Kalimantan and also discovered the highly prospective Romang Island with then ASX-listed
Robust Resources Limited.
Prior to developing projects in Indonesia, Justin worked as a consultant, leading many successful turnaround projects
for blue chip mining companies around the world including Freeport McMoran (Grasberg deposit, Indonesia where
he spent 2 years), Lihir Gold (Lihir mine, Papua New Guinea), Placer Dome (Nevada, USA), BHP Billiton (Ingwe Coal,
South Africa), Rio Tinto (West Angeles Iron Ore, Australia), Nickel West (Western Australia) and QNI Yabulu refinery
(Queensland, Australia). He was a Director of ASX listed Alpha HPA Limited until November 2023.
Mr Werner is currently non-executive chairman of ASX-listed Far East Gold Limited.
Christopher Shepherd – Director and Chief Financial Officer
Chief Financial Officer since 15 November 2021. Director since 23 December 2022.
Chris Shepherd is a Chartered Accountant who holds Bachelor degrees in Applied Finance and
Commerce. Prior to joining the Company, Chris was a Partner and Managing Director of The
Pallinghurst Group in London and has over 20 years’ experience in private equity, investment
banking and corporate finance, advising on more than $30 billion in transactions across
Australasia, North America, Europe and Africa.
Prior to The Pallinghurst Group, Chris was an investment banker at Merrill Lynch and Deutsche Bank gaining extensive
experience in transaction origination, structuring and execution across the mining, industrial and consumer sectors.
Directors’ Report
Annual Report 2024 Nickel Industries 17
James Crombie – Non-Executive Director
Director since 23 May 2008.
Jim Crombie graduated from the Royal School of Mines, London, with a B.Sc. (Hons) in Mining
Engineering, having been awarded an Anglo American Scholarship. Mr. Crombie held various
positions with DeBeers Consolidated Mines and the Anglo American Corporation in South Africa
and Angola between 1980 and 1986. He spent the next thirteen years as a Mining Analyst and
Investment Banker with Shepards, Merrill Lynch, James Capel & Co. and finally with Yorkton
Securities. Mr Crombie was the Vice President, Corporate Development of Hope Bay Mining
Corporation Inc. from February 1999 through May 2002 and President and CEO of Ariane Gold Corp. from August 2002
to November 2003. Mr Crombie was President, CEO and a director of Palmarejo Silver and Gold Corporation until the
merger with Coeur d’Alene Mines Corporation, one of the world’s leading silver companies, in December 2007. He was
a director of Sherwood Copper Corporation until its business combination with Capstone Mining Corp. in November
2008. Currently, Mr Crombie is President and CEO of Odyssey Resources Corp.
Dasa Sutantio – Non-Executive Director
Director since 29 May 2020.
Mr Sutantio graduated with a Bachelor of Commerce degree from the Australian National
University in 1987 and has been involved in the Asian financial sector for more than 20 years,
holding various senior positions at Citibank N.A., Bank Tiara Asia Tbk., the Indonesian Bank
Restructuring Agency and PT Bank Mandiri Tbk. He joined the Indonesian Tanito Group in 2010 and
is currently a Director and CFO responsible for overseeing the Tanito Group’s investments in the
financial, mining support, marine logistics/shipping, property and hospitality sectors. Mr Sutantio
is a director-appointee of PT Karunia Bara Perkasa, currently the Company’s third largest shareholder.
Muliady Sutio – Non-Executive Director
Director since 21 September 2023.
Mr Sutio has a Bachelor of Industrial Engineering degree from Trisakti University in 1994. His
career began at PT Astra International Tbk in 1994 as an Efficiency Division Analyst. Mr Sutio was
appointed as Team Leader for PT Pamapersada Nusantara’s business processes in 2000. In 2004,
he was appointed as Corporate Planning and System Development Head and in 2007, he was
appointed as Head of Supply Management. In 2014, he was appointed as President Director of PT
Energia Prima Nusantara, as well as the Director of PT Pama Indo Mining. From 2015 until 2017, he
was also appointed President Director of PT Unitra Persada Energia.
Mr Sutio currently serves as the President Director of DTN, President Director of PT Agincourt Resources which
operates the world class 6.5 million ounces resources Martabe gold mine and is Commissioner of the following
companies: PT Energia Prima Nusantara (a renewable energy company with interests in solar- and hydro-power
operations), PT Persada Tambang Mulia, PT Sumbawa Jutaraya, PT Bhumi Jepara Services and PT Unitra Nusantara
Persada, all of which are subsidiaries companies of the United Tractors group.
Haijun Wang – Non-Executive Director
Director since 1 November 2023.
Mr Wang has a Degree from Beijing University of Aeronautics and Astronautics, majoring in Solid
Rocket Engines, as well as post graduate degree from the China Academy of Launch Vehicle
Technology majoring in Liquid Rocket Engines. Mr Wang was the CEO of Shanghai Decent from
2008 and then became President Director of Shanghai Decent in 2023. He has worked in various
senior roles with Tsingshan since 2004, including as CEO of Ruipu Technology Group from 2013 to
2016.
Directors’ Report
18
Nickel Industries Annual Report 2024
William Shangjaya – Non-Executive Director
Director since 9 May 2023.
Mr Shangjaya has been a key member of the rapid development of Tsingshan since 2000. His
previous experience spans many senior roles and operations including head of AOD Department
of Zhejiang Tsingshan Special Steel Company Limited, the General Manager of Zhejiang Tsingshan
Steel Company Limited, the Chairman of Zhejiang Ruipu Machinery Company Limited, the Vice
President of Ruipu Technology Group Company Limited, the Chairman of Fujian Dingxin Nickel
Company Limited and the Vice Chairman of Tsingtuo Group Company Limited.
Mr Shangjaya has already played a key role in the development of the Company’s RKEF operations, as a Shanghai
Decent nominee to the Board of the Company’s Indonesian RKEF entities, as well as director of the Company’s
Singaporean subsidiary holding companies.
In his current role as Chairman of Eternal Tsingshan he has successfully led the management, development and
operations of the IMIP and the IWIP, which are the world’s largest integrated nickel processing industrial parks with
nearly 100,000 employees.
Yuanyuan Xu – Non-Executive Director
Director since 26 April 2018.
Ms Yuanyuan Xu graduated with a Bachelor Degree in Fashion Business and Fashion Design from
Instituto Marangoni and then obtained a Masters Degree in Economics from the Business Institute
of Pennsylvania. After graduation, Ms Xu worked on marketing, public relations and procurement
activities in the fashion industry before joining the financial industry, working for Pin An Securities
and IDG Capital, particularly in macro policy analysis, new energy industry research, investment
and mergers and acquisitions.
She is currently an Executive Director of Shanghai Wanlu Investment Co., Ltd.
Emma Hall – Non-Executive Director
Director since 11 June 2024.
Ms Hall has held senior executive level positions at several multi-national companies in the critical
minerals industry. These companies specialised in mining, as well as downstream processing,
where Emma led strategy, marketing and business development functions. Prior to this, Emma’s
earlier career was in investment banking in Sydney and London. Emma has over 10 years’
experience in the global battery metals industry including wide-ranging commercial and technical
engagements with battery manufacturers and OEMs in USA, Europe, Japan, China and South
Korea. This experience includes 5 years as Vice President Corporate Development at Tianqi Lithium Corporation
during which the company significantly grew its presence in Australia, Chile and North Asia. Emma holds Bachelor of
Commerce and Bachelor of Laws (Hons) degrees from the University of Western Australia and a Masters of Applied
Finance from Macquarie University and is a graduate of the Australian Institute of Company Directors.
Directors’ Report
Annual Report 2024 Nickel Industries 19
MANAGEMENT
Richard James Edwards – Company Secretary
Company Secretary since 28 March 2012.
Richard Edwards graduated with a Bachelor of Commerce degree from the University of New
South Wales, is a Fellow of the Governance Institute of Australia, a member of CPA Australia and
holds a Graduate Diploma of Applied Finance and Investment from FINSIA. Mr Edwards has worked
for over twenty years providing financial reporting and company secretarial services to a range
of publicly listed companies in Australia with a focus on the mining sector. He is also Company
Secretary of ASX-listed Alpha HPA Limited and Prospech Limited.
Simon Miller – General Manager Battery Materials
General Manager Battery Materials since 14 October 2024.
Mr Miller graduated from Deakin University with a Bachelor of Engineering Technology and
Bachelor of Commerce, with an additional postgraduate Master of Commerce in International
Finance and Trade. Mr Miller spent 10 years in Australia and Europe in the mining and
smelting industries (Copper and Zinc) before moving downstream into lithium-ion battery
cell manufacturing, where he spent the last five years leading the department commercially
responsible for raw materials, precursors and cathode active materials (Lithium, Nickel, Cobalt
and Manganese). He has previously sat on LME committees for Lithium and Cobalt and currently sits on the LME Nickel
advisory committee.
Muchtazar – Sustainability Manager
Sustainability Manager since 16 August 2021.
Muchtazar holds a Bachelor of Engineering degree from the Bandung Institute of Technology (ITB)
and a Master of Environmental Science from the University of Indonesia. In 2019, he was honoured
with the SDG Pioneer award from the United Nations Global Compact, becoming the second
Indonesian to receive this distinguished accolade. Since his appointment as Head of Sustainability
in 2021, Muchtazar has effectively led the company’s Sustainability Department, focusing on the
development and implementation of various ESG programs. His efforts have resulted in significant
ESG milestones, including the announcement of corporate commitment to achieving net zero emissions by 2050 and a
reduction in carbon intensity by 50% by 2035 at the United Nations Climate Change Conference 2023 (COP28) in Dubai.
Furthermore, the Hengjaya Mine has been recognised as a model for sustainable mining operations in Indonesia, having
received the prestigious Green PROPER rating from the Indonesia Ministry of Environment and Forestry since 2022.
Directors’ Report
20
Nickel Industries Annual Report 2024
Directors’ Meetings
The number of Directors’ meetings held and number of meetings attended by each of the Directors of the Company,
while they were a Director, during the year are:
Director
Board meetings
Audit Committee
meetings
Remuneration
Committee
meetings
Sustainability
Committee
meetings
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Norman Seckold
7
7
-
-
2
2
1
1
Justin Werner
7
7
-
-
-
-
2
2
Chris Shepherd
7
7
-
-
-
-
2
2
James Crombie
7
6
2
2
2
2
-
-
Emma Hall(1)
3
3
1
1
-
-
-
-
Dasa Sutantio
7
6
-
-
-
-
-
-
Muliady Sutio
7
7
-
-
-
-
-
-
Haijun Wang
7
7
2
2
-
-
-
-
William Shangjaya
7
7
-
-
-
-
2
2
Yuanyuan Xu
7
7
-
-
-
-
-
-
(1) Appointed as a Director on 11 June 2024.
Directors’ Interests
The beneficial interests of each Director of the Company in the issued share capital of the Company are:
Director
1 January 2024
Purchased
Sold
Date of this report
Norman Seckold
113,715,661
-
-
113,715,661
Justin Werner
32,611,228
-
-
32,611,228
James Crombie
6,580,000
-
-
6,580,000
Chris Shepherd
57,723
-
-
57,723
Dasa Sutantio
-
-
-
-
William Shangjaya
-
-
-
-
Muliady Sutio
-
-
-
-
Haijun Wang
-
-
-
-
Yuanyuan Xu
119,075,237
-
-
119,075,237
Emma Hall
-(1)
-
-
-
(1) Number held on date of appointment as a Director on 11 June 2024.
Directors’ Report
Annual Report 2024 Nickel Industries 21
Dividends
The Company paid an interim unfranked dividend of A$0.025 per share during the year and a final unfranked dividend
for 2023 of A$0.025 during the year ended 31 December 2024 amounting to $142,731,425. Total dividends of A$0.05 per
share were paid or declared during the year ended 31 December 2024.
Significant Changes in State of Affairs
In the opinion of the Directors, significant changes in the state of affairs of the Group that occurred during the year
ended 31 December 2024 were as follows:
•
the Company completed the acquisition of a further 30.25% equity interest in the ENC Project by cash payment of
$695.8M, taking the Company’s interest in the ENC project to 44%;
•
in August 2024, the Company signed definitive agreements for the acquisition of the Sampala Project, three
contiguous nickel IUPs (mining licences) covering 6,654 hectares; and
•
in September 2024, the Company completed the acquisition of an initial 51% of the Siduarsi project.
In the opinion of the Directors, there were no other significant changes in the state of affairs of the Group during the
year ended 31 December 2024 other than as disclosed in this Directors’ Report, or in the financial statements.
Impact of Legislation and Other External Requirements
On 12 January 2014 the Indonesian Government introduced a ban on the export of unprocessed minerals. As a
consequence, the mining operations at the Hengjaya Mine ceased. Whilst the ban on the export of unprocessed
minerals remains in place, mining operations were recommenced in October 2015 following the signing of a series of
offtake agreements to supply ore to Tsingshan group companies within the IMIP. There were no environmental or other
legislative requirements during the year that have significantly impacted the results or operations of the Group.
As disclosed in the Business Risks section of this report the Company is also monitoring the tax implications and
risks resulting from the Base Erosion and Profit Shifting (BEPS) Pillar 2.0 requiring multinational enterprises to pay a
minimum effective corporate tax rate of 15%.
Environmental Regulations
The Group’s operations are subject to environmental regulations in the Republic of Indonesia.
The Board of Directors, the Sustainability Committee of the Company and its Sustainability Manager regularly monitors
compliance with environmental regulations. The Directors are not aware of any significant breaches of these regulations
during the period covered by this report.
The Group’s third Sustainability Report was published in June 2024.
Likely Developments
Information as to likely developments in the operations of the Group and the expected results of those operations in
subsequent years has not been included in this report because disclosure of this information would be likely to result in
unreasonable prejudice to the Group.
Directors’ Report
22
Nickel Industries Annual Report 2024
Indemnification of Officers and Auditors
During or since the end of the year, the Company has not indemnified or made a relevant agreement to indemnify an
officer or auditor of the Company against a liability incurred by such an officer or auditor. In addition, the Company has
not paid or agreed to pay, a premium in respect of a contract insuring against a liability incurred by an officer or auditor.
Non-audit Services
During the year ended 31 December 2024 KPMG, the Company’s auditor, has performed other services in addition to
their statutory audit duties.
2024
$
2023
$
Auditors of the Company
Audit and review of financial reports – KPMG Australia
540,656
388,483
Audit and review of financial reports – KPMG Indonesia
290,995
254,567
Other assurance services – KPMG Australia
54,783*
250,515
Other assurance services – KPMG Indonesia
27,996
13,413
Advisory services – KPMG Australia
117,218
-
Advisory services – KPMG Indonesia
3,211
-
1,034,859
906,978
*
Additionally, KPMG was paid $152,046 for other assurance services undertaken on behalf of PT Danusa Tambang Nusantara, for which the
Company was reimbursed.
The Directors are satisfied that the provision of non-audit services, during the 2024 year, by the auditor, or by another
person or firm on the auditor’s behalf, is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001 (Cth). The Directors are of the opinion that these services, do not compromise the external
auditor’s independence for the following reasons:
•
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
•
none of the services undermine the general principles relating to auditor independence, as set out in Code of
Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical
Standards Board, including reviewing or auditing the auditor’s own work, acting in a management or decision-making
capacity for the Company, acting as advocate for the Company or jointly sharing economic risks and rewards.
Events Subsequent to Balance Date
There has not arisen in the interval between the end of the financial year and the date of this report any other item,
transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect
significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future
financial years.
Directors’ Report
Annual Report 2024 Nickel Industries 23
Business Risk Disclosures
Risk
Description
Mitigant
Commodity
price
fluctuations
As a producer of NPI, nickel matte and MHP, the earnings
of Nickel Industries are correlated to the price of NPI
and nickel matte, and Nickel Industries’ cash costs are
correlated to the price of other commodities including
coal and nickel ore.
Commodity prices, including NPI, nickel matte, coal
and nickel ore can fluctuate rapidly and are affected by
numerous factors beyond the control of the Company.
These factors include world demand for commodities,
production cost levels, macroeconomic factors such as
expectations regarding inflation, interest rates and global
and regional demand for, and supply of, commodities,
general global economic conditions, and short positions
taken by traders, miners and processors.
A decline in the market price of NPI, nickel matte or
MHP, and price fluctuations for other commodities may
have an adverse effect on the Company’s revenues
and operations and the Company’s ability to fund those
operations. At 31 December 2024 the Company has
impaired the carrying value of its Hengjaya Nickel and
Ranger Nickel RKEF operations. Should margins remain
low for a prolonged period, further impairment of carrying
values may be required in the future.
The Company continues to focus on
minimising the cost of production,
which we believe provides a level
of cash flow protection through the
cycle.
The Company’s continued
diversification of its product
offering, including once the ENC
is in production increased MHP
as well as nickel cathode and
nickel sulphate - these products
all have different price drivers that
over the medium to long-term,
should increase the stability of the
Company’s earnings.
Directors’ Report
24
Nickel Industries Annual Report 2024
Risk
Description
Mitigant
Reliance on
Tsingshan group
The continued operations of Hengjaya Nickel,
Ranger Nickel, Angel Nickel and Oracle Nickel and
the development of HPAL and potential nickel matte
converter projects are reliant on the relationship between
the Company and Tsingshan, and Tsinghan’s role in
developing and constructing those projects.
Sales
All sales of NPI and MHP are currently sold to Tsingshan
group companies and the Company has heavy reliance on
the Tsingshan group as a purchaser of NPI produced from
Hengjaya Nickel, Ranger Nickel, Angel Nickel and Oracle
Nickel.
There may be a materially adverse effect on the
Company’s financial performance and that of Hengjaya
Nickel, Ranger Nickel, Angel Nickel, Oracle Nickel and
Tsing Creation if Shanghai Decent fails to purchase all of
the offtake and alternative customers are not found.
Supply of ancillary services within the IMIP and IWIP
The Company and the Group Entities do not have
any formal contractual agreements for the supply of
ancillary services within the IMIP or IWIP that support
the operations of Hengjaya Nickel, Ranger Nickel, Angel
Nickel and Oracle Nickel (for example, power and access
to port). The operations of the Company and the Group
Entities may be affected if these services are not supplied
as in the past.
Design and construction of the ENC Project
Additionally, Shanghai Decent is responsible for the
design and construction of the Excelsior Nickel Cobalt
project, and currently holds a 56% interest in the project.
To facilitate the operations of
Hengjaya Nickel, Ranger Nickel
and Oracle Nickel within the IMIP,
and Angel Nickel within the IWIP,
Shanghai Decent entered into
formal collaboration agreements
with the Company in which:
•
Shanghai Decent has
committed to purchase all of the
Company’s NPI production. The
production of nickel products
other than NPI may be sold to
third parties (which Shanghai
Decent encourages) providing
customer diversification;
•
IMIP/IWIP provides such
services to the relevant Group
Entity in accordance with the
‘principle of non-discrimination’,
substantially the same manner,
with the same degree of care
and at the same price without
discrimination of any kind (such
as priority of entry) as it does for
users within the IMIP or IWIP (as
the case may be); and
•
Shanghai Decent has provided a
nameplate (i.e. production level)
and commissioning guarantee
to the Company, and Shanghai
Decent has an extensive history
of successfully doing as such.
Finally, the Board of Directors
believes the interests of Shanghai
Decent are closely aligned with that
of the Company, given Shanghai
Decent’s major shareholding in
the Company (directly) and its
ownership interests in each of the
Company’s RKEF projects.
Environmental,
social and
governance risk
Mining for ore and processing NPI , nickel matte and MHP
can be potentially environmentally hazardous and may
give rise to potentially substantial costs for environmental
rehabilitation, damage control and losses.
Significant liability could be imposed on the Hengjaya
Mine, Hengjaya Nickel entities, the Ranger Nickel entities,
the Angel Nickel entities, the Oracle Nickel entities, and
the ENC and HNC HPAL projects for damages, clean-
up costs, or penalties in the event of certain discharges
into the environment, environmental damage caused by
previous occupiers or non-compliance with environmental
laws or regulations. Further, the failure of the Company or
its related entities to engage with the local communities
would risk disaffection on the part of the communities,
which may have adverse implications for the Company’s
operations.
The Company seeks to minimise
these risks by conducting its
activities (including its operating
entities where within its control)
in an environmentally responsible
manner, in accordance with
applicable laws and regulations
and where possible, by carrying
appropriate insurance coverage.
Further, the Company maintains
strong community relations to
ensure that the local stakeholders
are supportive of the Company’s
operations in Indonesia.
Directors’ Report
Annual Report 2024 Nickel Industries 25
Risk
Description
Mitigant
Management
and key
personnel risk
The Company’s business and future success heavily
depends upon the continued services of a small group of
executive management and other key personnel.
If one or more of the Company’s management or key
personnel were unable or unwilling to continue in their
present positions, the Company might not be able to
replace them easily or at all.
The Company’s business may be severely disrupted,
its financial condition and results of operations may be
materially adversely affected, and it may incur additional
expenses to recruit, train and retain personnel.
Remuneration consultants have
been engaged by the Group during
the year ended 31 December 2024,
but their final reporting to the
Company remains outstanding.
Climate risk
The Hengjaya Mine and the IMIP, where the Hengjaya
Nickel, Ranger Nickel and Oracle Nickel RKEF lines and
the HNC and ENC Projects are located, is located in the
Indonesian province of Central Sulawesi. The IWIP, where
the Angel Nickel RKEF lines are located, is located in
Halmahera Island in Indonesia’s North Maluku province.
The Hengjaya Mine. Hengjaya Nickel, Ranger Nickel,
Angel Nickel Oracle Nickel and HNC operations are
therefore subject to the local climate of Central Sulawesi
and North Maluku. Exploration, mining production and
transportation activities may be susceptible to risks and
hazards resulting from sustained precipitation or other
weather conditions. If these risks do occur, they may
result in production delays, increased costs and increased
liabilities.
Further, changes in laws and policies, including in
relation to carbon pricing, greenhouse gas emissions
and energy efficiency, may adversely impact operations.
Technological changes, including increasing use of
renewable energy, may affect operations.
For a discussion on the Company’s
current strategy to mitigate these
risks, please refer to ‘TCFD section’
of this report.
Cyber risk
The Company and its Group Entities rely on IT
infrastructure and systems and the efficient and
uninterrupted operation of core technologies. The
Company’s core technologies and other systems and
operations could be exposed to damage or interruption
from system failures, computer viruses, cyber-attacks,
power or telecommunication provider’s failure or human
error. These events may cause one or more of the
Company’s core technologies to become unavailable.
Any interruptions to these operations would impact the
Company’s ability to operate and could result in business
interruption, loss of customers and revenue, damaged
reputation and weakening of competitive position and
could therefore adversely affect the Company’s operating
and financial performance.
The Company engages a reputable
third-party IT firm to manage its IT
infrastructure and cyber-security. In
early 2024 the Company changed IT
firms with the aim of enhancing its
cyber-security levels.
Directors’ Report
26
Nickel Industries Annual Report 2024
Risk
Description
Mitigant
Changes in
taxation laws
and policies
Changes to tax laws may affect the Company and its
shareholders, and the Group Entities.
There may be tax implications arising from ownership of
the Company’s shares, the receipt of dividends (if any)
from the Company, receiving returns of capital and the
disposal of the shares. Taxation concessions available to
any Group Entity may change or cease to be applicable
over time.
Further, there may be further potential tax implications
and risks resulting from the Base Erosion and Profit
Shifting (BEPS) Pillar 2.0. Broadly, the rules are on new
global minimum tax and aim to ensure that multinational
enterprises (MNEs) pay a minimum effective corporate
tax rate of 15%. This has been legislated in Australia
commencing 1 January 2024, in Indonesia and Singapore
from 1 January 2025 and is anticipated to be enacted
by Hong Kong. Additionally, the rules are expected to
heighten the level of reporting and compliance to evaluate
the impact on the Company’s financial statements, and
report to the relevant tax authorities where required.
The Company, with its advisors,
monitors developments in this
respect and would seek to engage
the relevant authorities should any
of these risks emerge.
Further, the Company continues to
diversify its production mix which
may provide some protection
against the effects of any changes
in tax laws and policies that affect
any one nickel product.
With respect to BEPS Pillar 2.0, the
Company has taken measures to
analyse the potential impact on the
Company’s future financial and tax
position.
REMUNERATION REPORT - (AUDITED)
All amounts in this remuneration report are in Australian Dollars unless otherwise stated.
Principles of Compensation - (Audited)
Key management personnel have authority and responsibility for planning, directing and controlling the activities of the
Group. Key management personnel comprise the Directors of the Company. No other employees have been deemed
to be key management personnel. The policy of remuneration of Directors and senior executives is to ensure the
remuneration package properly reflects the person’s duties and responsibilities, and that remuneration is competitive in
attracting, retaining and motivating people of the highest quality. Compensation levels have been, and will be, set to be
in line with Australian listed entities of equivalent size and comparable operations in order to attract and retain suitably
qualified and experienced key management personnel but also having regard to the prevailing financial capacity of the
Company.
The Board is responsible for reviewing and evaluating its own performance. The evaluation process is intended
to assess the Group’s business performance, whether long term strategic objectives are being achieved and the
achievement of individual performance objectives.
Remuneration generally consists of salary payments and no share-based payments have been made. The remuneration
disclosed below represents the cost to the Group for the services provided under these arrangements.
Consultancy Agreements with key management personnel
The Company has entered into an executive consultancy agreement with a company associated with Norman Seckold.
Under this executive consultancy agreement, the consultancy company of Mr Seckold agrees to make Mr Seckold
available to perform the duties and responsibilities of the position of Executive Chairman. During the year the Company
received a fee of A$33,333 per month, equating to A$400,000 per annum. The consultancy agreement commenced on 1
May 2018 and continues until terminated in accordance with its terms.
The Company has entered into an executive consultancy agreement with a company associated with Justin Werner.
Under this executive consultancy agreement, the consultancy company of Mr Werner agrees to make Mr Werner
available to perform the duties and responsibilities of the position of Managing Director. During the year the consultancy
company received a fee of US$29,533 per month, equating to US$354,396 per annum, the equivalent of A$539,251.
Additionally, Mr Werner is paid a salary by PT Hengjaya Mineralindo, which combined with his consultancy fee received
by the Company is to take his underlying salary to US$500,000. His gross compensation shown in the table below
includes amounts paid to him directly in Indonesia for travel allowance, taxes and an operational bonus equivalent to
A$61,594, which combined took his total remuneration by the group to the equivalent of A$941,506. The consultancy
agreement commenced on 1 April 2018 and continues until terminated in accordance with its terms, the employment
agreement with PT Hengjaya Mineralindo being ongoing until terminated in accord with its terms.
Directors’ Report
Annual Report 2024 Nickel Industries 27
The Company has entered into an employment agreement with Director and Chief Financial Officer Chris Shepherd.
Under this agreement, Mr Shepherd received A$50,000 per month, including superannuation, equating to A$600,000
per annum, inclusive of superannuation. From 1 August 2024, Mr Shepherd received A$75,000 per month, including
superannuation, equating to A$900,000. The agreement commenced on 1 August 2021 and Mr Shepherd assumed
the position of Chief Financial Officer on 15 November 2021. Additionally, Mr Shepherd was awarded a discretionary
performance bonus of A$600,000 during this financial year as approved by the Remuneration Committee.
Each Executive Director is entitled to be reimbursed for reasonable travel and other expenses incurred in connection
with attending meetings of the Board and any committee on which he or she serves. The consultancy and employment
agreements may be terminated by the Company or the consultancy company by either party giving three months’
notice. The Company may in its absolute discretion make a payment in lieu of all or part of such notice and the
employment would terminate on the date that the Company notifies the Director of the termination. The Company may
terminate the consultancy agreements without notice in certain circumstances, including but not limited to a breach of
contract, criminal activity or serious misconduct by the consultancy company or the key management personnel.
Each of the Company’s Non-Executive Directors have entered into Letters of Appointment with the Company to serve
as Non-Executive Directors. During the year, each of the Non-Executive Directors James Crombie, Dasa Sutantio,
Muliady Sutio, William Shangjaya, Haijun Wang, Yuanyuan Xu and Emma Hall received a fee of A$8,333 per month,
equating to A$100,000 per annum.
Each Non-Executive Director receives a fee of A$10,000 per annum for each Board committee on which they serve; that
is, James Crombie and Emma Hall two committees, Haijun Wang and William Shangjaya one committee.
No Directors or senior executives received performance related remuneration during the year ended 31 December
2024, other than the bonuses outlined for Mr Shepherd and Mr Werner above. Remuneration consultants were engaged
by the Group during the year ended 31 December 2024 and this work was not yet finalised. During 2024 they were paid
A$112,875.
Consequences of performance on shareholder wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board has regard to the following
information in respect of the current year ended 31 December 2024 and the previous five financial periods.
US$
2024
$
2023
$
2022
$
2021
$
2020
$
6 Months to
31 December 2019
$
Net profit/(loss)
attributable to
owners of the
Company
(168,589,135)
121,597,563
158,978,977
137,938,917
110,610,841
56,504,374
Dividends paid
142,731,425
85,569,052
72,724,697
75,088,707
15,441,648
-
The Board also considers non-financial indices in assessing the Group’s performance and the shareholders wealth. This
includes obtaining the permits and approvals to further develop the mining operations, identifying and opportunities for
potential strategic business partnerships and ventures and the success of fund raising activities.
Directors’ Report
28
Nickel Industries Annual Report 2024
Details of Remuneration for the Year Ended 31 December 2024 - (Audited)
Details of Director remuneration and the nature and amount of each major element of the remuneration of each
Director of the Company are set out below. All balances included are denominated in Australian dollars.
Remuneration for year ended 31 December 2024:
Key
management
personnel
Short term
Post-
employment
Share
based
payments
Other
Benefit(7)
A$
Total
A$
Proportion of
remuneration
performance
related
%
Value of
options as a
proportion of
remuneration
%
Salary
and fees
A$
Superannu-
ation
A$
Shares
A$
Executive
Directors
Norman Seckold
400,000
-
-
-
400,000
-
-
Justin Werner
879,912
-
-
61,594
941,506
6.5
-
Christopher
Shepherd(1)
650,885
73,587
-
608,270
1,332,742
45.6
-
Non-Executive
Directors
James Crombie
120,000
-
-
-
120,000
-
-
Dasa Sutantio
100,000
-
-
-
100,000
-
-
Muliady Sutio
100,000
-
-
-
100,000
-
-
Haijun Wang
110,000
-
-
-
110,000
-
-
William
Shangjaya
100,000
-
-
-
100,000
-
-
Yuanyuan Xu
100,000
-
-
-
100,000
-
-
Emma Hall(2)
66,667
-
-
-
66,667
-
-
Total
2,627,464
73,587
-
669,864
3,370,915
(1) Other benefit includes bonuses paid and increase in annual leave balance accrued carried forward.
(2) Appointed as a Director on 11 June 2024.
Directors’ Report
Annual Report 2024 Nickel Industries 29
Remuneration for year ended 31 December 2023:
Key
management
personnel
Short term
Post-
employment
Share
based
payments
Other
Benefit(7)
A$
Total
A$
Proportion of
remuneration
performance
related
%
Value of
options as a
proportion of
remuneration
%
Salary
and fees
A$
Superannu-
ation
A$
Shares
A$
Executive
Directors
Norman Seckold
400,000
-
-
-
400,000
-
-
Justin Werner
855,037
-
-
51,484
906,521
5.7
-
Christopher
Shepherd(7)
538,641
61,359
-
38,385
638,385
6.0
-
Non-Executive
Directors
Robert Neale(1)
200,992
21,508
-
-
222,500
-
-
James Crombie
112,500
-
-
-
112,500
-
-
Weifeng Huang(2)
84,167
-
-
-
84,167
-
-
Mark
Lochtenberg(3)
92,929
10,754
-
-
103,683
-
-
Dasa Sutantio
92,500
-
-
-
92,500
-
-
Muliady Sutio(4)
27,778
-
-
-
27,778
-
-
Haijun Wang(5)
16,667
-
-
-
16,667
-
-
William
Shangjaya(6)
58,333
-
-
-
58,333
-
-
Yuanyuan Xu
92,500
-
-
-
92,500
-
-
Total
2,572,044
93,621
-
89,869
2,755,534
(1) Resigned as a Director on 31 December 2023.
(2) Resigned as a Director on 1 November 2023.
(3) Resigned as a Director on 8 November 2023.
(4) Appointed as a Director on 21 September 2023.
(5) Appointed as a Director on 1 November 2023.
(6) Appointed as a Director on 9 May 2023.
(7) Other benefit includes bonuses paid and increase in annual leave balance accrued carried forward.
The total remuneration expense for the year ended 31 December 2024 of A$3,370,915 (December 2023: A$2,755,534)
has been recognised in the Statement of Profit or Loss at the US$ equivalent of $2,192,117 (December 2023: $1,828,572).
Directors’ Report
30
Nickel Industries Annual Report 2024
Movement in shares - (Audited)
The movement during the reporting year in the number of ordinary shares in the Company held directly, indirectly or
beneficially, by each key management person, including their related parties, is as follows:
1 January 2024
Purchased
Sold
31 December 2024
Norman Seckold
113,715,661
-
-
113,715,661
Justin Werner
32,611,228
-
-
32,611,228
Christopher Shepherd
57,723
-
-
57,723
James Crombie
6,580,000
-
-
6,580,000
Emma Hall(1)
-
-
-
-
Dasa Sutantio
-
-
-
-
Muliady Sutio
-
-
-
-
Haijun Wang
-
-
-
-
William Shangjaya
-
-
-
-
Yuanyuan Xu
119,075,237
-
-
119,075,237
(1) Appointed as a Director on 11 June 2024.
1 January 2023
Purchased
Sold
31 December 2023
Robert Neale(1)
10,700,000
-
-
10,700,000
Norman Seckold
113,715,661
-
-
113,715,661
Justin Werner
29,765,228
2,846,000
-
32,611,228
James Crombie
6,580,000
-
-
6,580,000
Christopher Shepherd
57,723
-
-
57,723
Weifeng Huang
3,510,000
350,000
-
3,860,000(2)
Mark Lochtenberg(3)
37,538,584
2,000,000
-
39,538,584(3)
Dasa Sutantio
-
-
-
-
Muliady Sutio(4)
-(2)
-
-
-
Haijun Wang(5)
-(3)
-
-
-
William Shangjaya(6)
-(1)
-
-
-
Yuanyuan Xu
97,258,258
21,816,979
-
119,075,237
(1) Resigned as a Director on 31 December 2023.
(2) Resigned as a Director on 1 November 2023.
(3) Resigned as a Director on 8 November 2023.
(4) Appointed as a Director on 21 September 2023.
(5) Appointed as a Director on 1 November 2023.
(6) Appointed as a Director on 9 May 2023.
Transactions with Key Management Personnel - (Audited)
Director Norman Seckold holds a beneficial interest in an entity, MIS Corporate Pty Limited, which provided full
administrative services, including administrative, accounting and company secretarial staff both within Australia and
Indonesia, rental accommodation, services and supplies to the Group. Fees charged by MIS during the year amounted
to A$600,000 (31 December 2023: A$456,000). As at 31 December 2024 A$50,000 (31 December 2023: A$0) remained
outstanding.
Directors’ Report
Annual Report 2024 Nickel Industries 31
LEAD AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
The lead auditor’s independence declaration is set out on page 32 and forms part of the Directors’ Report for the year
ended 31 December 2024.
Signed at Sydney this 24th day of February 2025 in accordance with a resolution of the Board of Directors:
Norman Seckold
Justin Werner
Chairman
Managing Director
Directors’ Report
32
Nickel Industries Annual Report 2024
Lead Auditor’s Independence Declaration
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Nickel Industries Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Nickel Industries
Limited for the financial year ended 31 December 2024 there have been:
i.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Adam Twemlow
Partner
Brisbane
24 February 2025
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used
under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under
Professional Standards Legislation.
Annual Report 2024 Nickel Industries 33
For the year ended 31 December 2024
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
US$
Notes
31 December 2024
$
31 December 2023
$
Sales revenue
24
1,744,452,733
1,880,104,794
Cost of sales
(1,429,798,345)
(1,430,421,113)
Depreciation and amortisation expense
12, 17
(127,978,181)
(111,656,383)
Gross profit
186,676,207
338,027,298
Directors’ fees and consultants’ expenses
(15,350,381)
(12,443,641)
Exploration and evaluation expenditure
(1,317,061)
(3,483,240)
Gain/(loss) of equity accounted investees
17
7,235,507
(2,560,590)
Other expenses8
4
(19,125,238)
(18,195,163)
Impairment expense
18
(236,582,302)
-
Results from operating activities
(78,463,268)
301,344,664
Financial income
5
13,202,476
13,520,610
Financial expense
5
(108,198,973)
(90,897,416)
Net financial expense
(94,996,497)
(77,376,806)
(Loss)/profit before income tax
(173,459,765)
223,967,858
Income tax expense
11
(16,336,601)
(47,764,482)
(Loss)/profit for the year
(189,796,366)
176,203,376
Other comprehensive income
Items that may be classified subsequently to profit or loss
(19,493)
(98,781)
Total comprehensive (loss)/profit for the year
(189,815,859)
176,104,595
(Loss)/profit attributable to:
Owners of the Company
(168,589,135)
121,597,563
Non-controlling interest
18
(21,207,231)
54,605,813
(Loss)/profit for the year
(189,796,366)
176,203,376
Total comprehensive (loss)/profit attributable to:
Owners of the Company
(168,604,729)
121,518,538
Non-controlling interest
18
(21,211,130)
54,586,057
Total comprehensive (loss)/profit for the year
(189,815,859)
176,104,595
Earnings per share
Basic and diluted (loss)/profit per share (cents) for the year
10
(3.93)
3.57
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
8
Refer to Note 2 for reclassification of prior period expenses.
34
Nickel Industries Annual Report 2024
As at 31 December 2024
Consolidated Statement
of Financial Position
US$
Notes
31 December 2024
$
31 December 2023
$
Current assets
Cash and cash equivalents
20
210,953,629
284,053,495
Term deposits and cash reserve
6
11,514,444
494,753,107
Trade and other receivables
7
345,632,514
328,505,849
Inventory
9
139,818,686
199,448,465
Other current assets
8
36,002,832
37,911,368
Total current assets
743,922,105
1,344,672,284
Non-current assets
Other non-current assets
8
68,243,467
41,242,609
Trade and other receivables
7
49,498,824
101,374,795
Inventory
9
53,035,397
12,667,046
Property, plant and equipment
12
1,572,652,484
1,836,771,098
Exploration and evaluation assets
13
56,211,778
24,884,921
Investment in equity accounted investees
17
1,230,274,917
527,239,410
Intangible Assets
17
75,065,789
79,745,215
Goodwill
18
47,343,509
102,748,404
Total non-current assets
3,152,326,165
2,726,673,498
Total assets
3,896,248,270
4,071,345,782
Current liabilities
Trade and other payables
14
194,768,408
192,758,925
Current tax payable
11
21,571,187
26,092,246
Provision – employees’ benefit obligation
2,256,151
1,761,767
Borrowings
15
136,381,806
257,269,448
Total current liabilities
354,977,552
477,882,386
Non-current liabilities
Provision – rehabilitation
921,522
1,845,273
Deferred income tax liability
11
64,212,593
96,099,816
Other non-current liability
9,726,283
1,122,739
Borrowings
15
918,180,614
587,753,980
Total non-current liabilities
993,041,012
686,821,808
Total liabilities
1,348,018,564
1,164,704,194
Net assets
2,548,229,706
2,906,641,588
Equity
Share capital
16
2,035,227,454
2,032,927,026
Reserves
16
19,050,346
19,065,940
Retained profits
61,739,540
373,060,100
Total equity attributable to equity holders of the Company
2,116,017,340
2,425,053,066
Non-controlling interest
18
432,212,366
481,588,522
Total equity
2,548,229,706
2,906,641,588
The above consolidated statement of financial position should be read in conjunction with accompanying notes.
Annual Report 2024 Nickel Industries 35
For the year ended 31 December 2024
Consolidated Statement
of Changes in Equity
US$
Notes
Share
capital
$
Retained
profits
$
Reserves
$
Total
$
Non-
controlling
Interest
$
Total equity
$
Balance at 1 January 2023
942,442,827
337,031,589
19,144,965
1,298,619,381
515,925,058
1,814,544,439
Total comprehensive income for the year
Profit for the year
-
121,597,563
-
121,597,563
54,605,813
176,203,376
Remeasurement of defined benefit obligation
-
-
(79,025)
(79,025)
(19,756)
(98,781)
Total comprehensive income for the year
-
121,597,563
(79,025)
121,518,538
54,586,057
176,104,595
Transactions with owners, recorded directly in equity
Issue of shares
16
1,098,929,850
-
-
1,098,929,850
-
1,098,929,850
Costs of issue
16
(8,445,651)
-
-
(8,445,651)
-
(8,445,651)
Dividends
16
-
(85,569,052)
-
(85,569,052)
-
(85,569,052)
Transaction with non-controlling interest without a
change of control
18
-
-
-
-
(50,071,431)
(50,071,431)
Distributions to non-controlling interest
-
-
-
-
(38,851,162)
(38,851,162)
Balance at 31 December 2023
2,032,927,026
373,060,100
19,065,940
2,425,053,066
481,588,522
2,906,641,588
Balance at 1 January 2024
2,032,927,026
373,060,100
19,065,940
2,425,053,066
481,588,522
2,906,641,588
Total comprehensive income for the year
Loss for the year
-
(168,589,135)
-
(168,589,135)
(21,207,231)
(189,796,366)
Remeasurement of defined benefit obligation
-
-
(15,594)
(15,594)
(3,899)
(19,493)
Total comprehensive loss for the year
-
(168,589,135)
(15,594)
(168,604,729)
(21,211,130)
(189,815,859)
Transactions with owners, recorded directly in equity
Issue of shares
16
2,300,428
-
-
2,300,428
201,154
2,501,582
Dividends
16
-
(142,731,425)
-
(142,731,425)
-
(142,731,425)
Non-controlling interest change on acquisition
16
-
-
-
-
3,028,627
3,028,627
Distributions to non-controlling interest
-
-
-
-
(31,394,807)
(31,394,807)
Balance at 31 December 2024
2,035,227,454
61,739,540
19,050,346
2,116,017,340
432,212,366
2,548,229,706
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
36
Nickel Industries Annual Report 2024
Consolidated Statement
of Cash Flows
For the year ended 31 December 2024
US$
Notes
31 December 2024
$
31 December 2023
$
Cash flows from operating activities
Cash receipts from customers
1,805,677,055
1,763,110,738
Cash payments to employees and suppliers
(1,481,759,638)
(1,485,241,508)
Interest received
14,232,475
11,729,421
Taxes and fees paid
(55,293,324)
(56,359,558)
Payments for exploration and evaluation
(1,463,231)
(3,483,240)
Net cash from operating activities
20
281,393,337
229,755,853
Cash flows from investing activities
Receipts/(payments) from/(for) term deposit
6
490,913,689
(490,913,669)
Payments for exploration and evaluation assets
13
(18,414,666)
(24,884,921)
Payments for property, plant and equipment
12
(54,188,935)
(19,109,620)
Payments for construction in progress
12
(3,704,714)
(179,880,251)
Payments for investments
17
(695,800,000)
(341,300,000)
Payments for other non-current assets
8
-
(15,000,000)
Payments for additional interest in controlled entity
18
-
(75,000,000)
Cash on acquisition of controlled entity
18
601,151
-
Advancement of loan monies
8
(8,311,781)
(7,000,000)
Net cash used in investing activities
(288,905,256)
(1,153,088,461)
Cash flows from financing activities
Proceeds from issue of shares
16
-
828,929,850
Costs of issue
16
-
(8,445,651)
Dividend distributions
16
(142,731,425)
(85,569,052)
Payments for cash reserve amount
6
(7,675,026)
(3,839,438)
Proceeds from borrowings, net of borrowing costs
15, 20(c)
454,762,003
580,530,280
Repayment of borrowings
15, 20(c)
(252,718,000)
(315,482,000)
Payment of interest charges
20(c)
(84,253,942)
(51,008,068)
Payment of financing expenses
5
-
(18,476,640)
Distributions to non-controlling interest
(31,394,807)
(38,851,162)
Contributions by non-controlling interest
-
173,380,988
Net cash from/(used in) financing activities
(64,011,197)
1,061,169,107
Net increase in cash and cash equivalents
(71,523,116)
137,836,499
Effect of exchange rate adjustments on cash held
(1,576,750)
1,974,639
Cash and cash equivalents at the beginning of the year
284,053,495
144,242,357
Cash and cash equivalents at the end of the year
210,953,629
284,053,495
Non-cash financing and investing activities:
The acquisition of an investment disclosed in Note 18 included a non-cash transaction of $2,300,428 which was
funded through the issue of $2,300,428 in shares.
Non-cash investing activities
Payment for acquisition of interest in equity accounted investee
-
(270,000,000)
Payment for acquisition of controlled entity
18
2,300,428
-
Total non-cash investing activities
2,300,428
270,000,000
Non-cash financing activities
Proceeds from issue of shares
16
2,300,428
270,000,000
Total non-cash investing activities
2,300,428
270,000,000
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Annual Report 2024 Nickel Industries 37
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
NOTE 1 - REPORTING ENTITY
Nickel Industries Limited (the ‘Company’) is a company domiciled in Australia. The consolidated financial report for the
year ended 31 December 2024 comprises the Company and its subsidiaries (together referred to as the ‘Group’). The
Group is a for-profit entity and is involved in nickel ore mining, nickel pig iron and nickel matte production operations
and now the production of mixed hydroxide precipitate for use in the electric vehicle supply chain.
NOTE 2 - BASIS OF PREPARATION
Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with Australian
Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) and the Corporations
Act 2001. The consolidated financial report of the Group complies with International Financial Reporting Standards
(‘IFRS’) and interpretations adopted by the International Accounting Standards Board (‘IASB’).
The financial report was authorised for issue by the Directors on 24 February 2025.
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for certain financial
instruments which are measured at fair value.
Functional and presentation currency
These consolidated financial statements are presented in United States dollars, which is the Company’s functional
currency.
38
Nickel Industries Annual Report 2024
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future
periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amount recognised in the financial statements are
described in the following notes:
•
Note 11 – Income tax expense and the recoverability of deferred tax assets: The Group only recognised deferred
tax assets where it’s expected that the availability of future taxable profit against which deductible temporary
differences and tax losses carried forward can be utilised.
•
Note 12 – Depreciation of property, plant and equipment. The Group allocates depreciation expenses to its property,
plant, and equipment based on their assessed useful lifespans, which involves estimating the appropriate duration.
•
Note 13 – Exploration and evaluation assets: The Group capitalises expenditures relating to exploration and
evaluation where it is considered likely to be recoverable or where the activities have not reached a stage which
permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which
no reserves have been extracted, the Directors are of the belief that such expenditure should not be written off since
feasibility studies in such areas have not yet concluded.
•
Note 17 – Investments in equity accounted investees: The Group exerts judgements related to the determination of
the level of influence exercisable over the investees.
•
Note 18 – Impairment of carrying values of cash generating units (CGUs) including goodwill: The Group assesses
impairment at the end of each reporting period for each CGU by evaluating conditions and events specific to the
Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using
the higher of fair value less costs of disposal or value-in-use calculations which incorporate various key assumptions.
The preparation of annual impairment models involves the use of key estimates.
In forming views on these significant areas of estimation uncertainty, management have also had regard to the broader
macroeconomic environment. In the current year, whilst nickel prices improved marginally across year, operating
margins remained well below historical averages. Management have had regard to these factors when assessing the
short-term to medium-term outlook for nickel pricing, and the impacts this may have on financial performance of the
Group as a result.
Reclassification of prior period expenses
Certain types of expenses have been reclassified within the Consolidated Statement of Profit or Loss and Other
Comprehensive Income to more appropriately reflect the underlying nature of the expenses. The impact of this change
on the previously reported comparative period includes withholding taxes on dividend distributions of $20,676,650
being reclassified from other expenses to income tax expense.
Annual Report 2024 Nickel Industries 39
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
NOTE 3 - MATERIAL ACCOUNTING POLICIES
Basis of consolidation
Business combinations
The Group accounts for business combinations using the acquisition method when the acquired set of activities and
assets meets the definition of a business and control is transferred to the Group. In determining whether a particular set
of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a
minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.
The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set
of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the
gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.
The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets
acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in
profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity
securities.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such
amounts are generally recognised in profit or loss.
Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent
consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and
settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each
reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or loss.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases.
Non-controlling interest
The Group measures any non-controlling interest at its proportionate interest in the identifiable net assets of the
acquiree. Acquisitions of non-controlling interests are accounted for as transactions with equity holders in their capacity
as equity holders and therefore no goodwill is recognised as a result of such transactions.
Transactions eliminated on consolidation
Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup transactions,
are eliminated in preparing the consolidated financial statements. Where a controlled entity issues shares to minority
interests which does not result in loss of control by the Group, any gain or loss arising on the Group’s interest in the
controlled entity is recognised directly in equity.
Investments in equity-accounted investees
The Group’s interests in equity-accounted investees comprise interests in associates.
Associates are those entities in which the Group has significant influence, but not control or joint control, over the
financial and operating policies. A joint venture is an arrangement in which the Group has joint control, whereby the
Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in associates and joint ventures are accounted for using the equity method. They are recognised initially at
cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include
the Group’s share of the profit or loss and other comprehensive income of equity-accounted investees, until the date on
which significant influence or joint control ceases.
Nickel ore and nickel pig iron and nickel matte sales revenue
Saprolite and limonite nickel ore, low grade matte and nickel pig iron sales revenue is measured based on the
consideration specified in a contract with a customer. The Group recognises revenue when it transfers control over
goods or a service to a customer, based on the seller’s loading position.
Invoices for saprolite nickel ore sales are generated on a per barge basis and are usually payable within 10 working days.
Limonite ore sales were on the same basis but following the completion of the haul road from September 2023 invoicing
for limonite ore is now done on a monthly basis.
40
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Invoices for sales of nickel pig iron within the Indonesia Morowali Industrial Park (IMIP) in Indonesia (Hengjaya Nickel,
Ranger Nickel and Oracle Nickel) are generated at the end of each month of production, based on a pricing formula
referencing the average nickel pig iron price on the Shanghai Metal Exchange of the delivery month. Payment is due
within one month from the last delivery in the month.
Invoices for sales of low grade nickel matte within the IMIP (Hengjaya Nickel) are generated at the end of each month
of production, based on a pricing formula referencing the average nickel price on the London Metal Exchange of the
delivery month. A down payment of 85% is made against the original contract amount, with the final settlement amount
paid with reference to the invoice raised at the end of the delivery month.
Invoices for sales of nickel pig iron exported from the Indonesia Weda Bay Industrial Park in Indonesia (Angel Nickel) are
generated based on the loading inspection report and a final invoice is issued based on the nickel content delivered,
following receipt of third party assay results. The price is based on average nickel pig iron price on the Shanghai Metal
Exchange of the month prior to delivery. A 20% upfront payment is made prior to shipment based on a provisional
contract with the price based on the ten day average of the Shanghai Metal Exchange prior to delivery, with the balance
usually payable within 60 days.
Invoices for high grade nickel matte sales were generated once a month, originally on a provisional basis based on until
final assay results undertaken at the port of discharge have been received. When the final pricing is received, which
happens approximately three months after the original invoice any adjustment is taken up in the month in which the
amended final pricing is received.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less.
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to United
States dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are
recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost
in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and
liabilities denominated in foreign currencies that are stated at fair value are translated to United States dollars at foreign
exchange rates ruling at the dates the fair value was determined.
The Group transacts in the following foreign currencies: Australian dollars (A$ or AUD), Indonesian Rupee (IDR) and
Singapore Dollars (SGD).
Financial statements of foreign operations
The assets and liabilities of foreign entities are translated to United States dollars at the foreign exchange rates ruling
at the reporting date. The revenues and expenses of foreign operations are translated to United States dollars at rates
using a monthly average rate for the month in which the transaction occurred. Foreign exchange differences arising
on retranslation are recognised directly in the foreign currency translation reserve (‘FCTR’), a separate component of
equity.
Foreign exchange gains and losses arising from a monetary item receivable or payable to a foreign operation, the
settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of a net
investment in a foreign operation and are recognised directly in the FCTR.
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition,
are translated to United States dollars at exchange rates at the reporting date. The income and expenses of foreign
operations are translated to United States dollars using a monthly average rate for the month in which the transaction
occurred. When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to
profit or loss as part of the profit or loss on disposal.
At 31 December 2024, the functional currency of all components in the Group is United States dollars, with the
exception of two intermediary holding companies acquired in 2024 as part of the acquisition of the Siduarsi project. The
functional currency of these two entities is Indonesian Rupiah and Singapore dollars.
Annual Report 2024 Nickel Industries 41
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Property, plant and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Construction in progress
The Group recognises plant construction in progress costs at cost in a construction in progress account. Once
construction has been completed and the plant is in service, costs recognised as construction in progress will be
transferred to the appropriate assets category within property, plant and equipment and depreciation charges will
commence.
Depreciation and amortisation
Mining properties’ amortisation rate is applied on a straight-line basis over the remaining term of the mining licence,
inclusive of the option periods to extend. The amortisation is included in the costs of conversion of inventories.
Depreciation is charged to the income statement using a reducing balance method from the date of acquisition using
the following rates:
•
Furniture and fittings are depreciated at 25%.
•
Buildings and infrastructure are depreciated at 5%.
•
Mine infrastructure assets are depreciated at 5%.
•
Office equipment is depreciated at rates of between 25% and 40%.
•
Plant and machinery are depreciated at rates of between 5% and 25%.
•
Motor vehicles are depreciated at 25%.
Impairment
Financial assets
The Group recognises expected credit losses (ECLs), where material, on financial assets measured at amortised cost.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured
at 12-month ECLs:
•
Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life
of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables and contract assets are measured at an amount equal to lifetime ECLs. At each
reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at fair value
through profit or loss are credit impaired.
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of
recovering a financial asset in its entirety or a portion thereof.
Non-financial assets
The carrying amounts of the Group’s assets, other than deferred tax assets and inventories, are reviewed at each
balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s
recoverable amount is estimated. Goodwill, being an indefinite life intangible asset, is subject to annual impairment
testing, in which the goodwill is allocated to a cash generating unit (‘CGU’) for impairment testing and the value-in-use is
compared to the carrying value of assets and liabilities in that CGU.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in the consolidated profit or loss and other comprehensive
income, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to
the extent of that previous revaluation with any excess recognised through profit or loss.
Calculation of recoverable amount
The recoverable amount of assets is the greater of their fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. For an asset that does not
generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which
the asset belongs.
42
Nickel Industries Annual Report 2024
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Reversals of impairment
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Impairment charges against the carrying value of goodwill cannot be reversed.
Intangible assets
Intangible assets, including customer relationships and discounted offtake arrangements, that are acquired by
the Group and have finite useful lives are measured at cost less accumulated amortisation and any accumulated
impairment losses.
Share capital
Transaction costs
Transaction costs of an equity transaction are accounted for as a deduction from equity, net of any related income tax
benefit.
Dividends
Dividends are recognised as a liability in the period in which they are declared.
Finance income and finance costs
The Group’s finance income and finance costs include:
•
interest income;
•
interest expense;
•
dividend income;
•
the foreign currency gain or loss on financial assets and financial liabilities; and
•
the gain on the remeasurement to fair value of any pre-existing interest in an acquiree in a business combination.
Interest income or interest expense is recognised using the effective interest method. Dividend income is recognised in
profit or loss on the date on which the Group’s right to receive payment is established.
The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through the
expected life of the financial instrument to:
•
the gross carrying amount of the financial asset; or
•
the amortised cost of the financial liability.
In calculating interest income and interest expense, the effective interest rate is applied to the gross carrying amount
of the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial
assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying
the effective interest rate to the amortised cost of the financial asset. If the asset is no longer credit-impaired, then the
calculation of interest income reverts to the gross basis.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the income statement over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the balance sheet date.
Income tax
Income tax on the income statement for the year comprises current and deferred tax. Income tax is recognised in
the income statement except to the extent that it relates to items recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Annual Report 2024 Nickel Industries 43
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
The following temporary differences are not provided for:
•
the initial recognition of assets or liabilities that affect neither accounting nor taxable profit and differences relating
to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying
amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to
pay the related dividend.
The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and
Profit Shifting previously published the Pillar Two model rules designed to address the tax challenges arising from the
digitalisation of the global economy, including the implementation of a global minimum tax. The Group has a presence
in jurisdictions that have enacted or substantively enacted legislation in relation to the OECD/G20 BEPS Pillar Two
model rules. The Group continues to monitor and evaluate the domestic implementation of the Pillar Two rules in the
jurisdictions in which it operates.
The Group has determined that the global minimum top-up tax – which it is required to pay under Pillar Two legislation
– is an income tax in the scope of IAS 12. The Group has applied a temporary mandatory relief from deferred tax
accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.
Goods and services tax and Value Added Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (‘GST’) or value added
tax (‘VAT’), except where the amount of GST or VAT incurred is not recoverable from the taxation authority. In these
circumstances, the GST or VAT is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST or VAT included. The net amount of GST or VAT
recoverable from, or payable to taxation authorities is included as a current asset or liability in the statement of financial
position.
Cash flows are included in the statement of cash flows on a gross basis. The GST or VAT components of cash flows
arising from investing and financing activities which are recoverable from, or payable to taxation authorities are
classified as operating cash flows.
Employee benefits
Wages, salaries, annual leave, sick leave and non-monetary benefits
Liabilities for employee benefits for wages, salaries, annual leave and sick leave that are expected to be settled within
12 months of the reporting date represent present obligations resulting from employees’ services provided to reporting
date, are calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to
pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax.
Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on average costs
over the relevant period of production, and includes expenditure incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing them to their existing location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.
Inventories are classified as current or non-current assets based on whether the inventory is expected to be sold within
12 months of the reporting date.
44
Nickel Industries Annual Report 2024
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a
result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.
If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and, when appropriate, the risks specific to the liability.
It has been assessed that no such obligations exist presently in relation to the Company’s RKEF operations which are
undertaken within the confines of the IMIP and IWIP.
Site restoration
In accordance with the Group’s environmental policy and applicable legal requirements, a provision for site restoration
in respect of disturbed land, and the related expense, is recognised when the land is disturbed. Site restoration and
rehabilitation at the Company’s Hengjaya Mine is conducted on a continual basis and as mining operations move
from one area of operation to the next. Additionally, under the Company’s forestry licence obligations pursuant to the
Company being granted access to new areas, the Company is then obliged to plant equivalent acreage of new forest in
an area designated by the local Indonesian authorities.
Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial
and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes
by refencing the acquisition cost of assets and liabilities on the date of acquisition and if available the findings of
Independent Expert’s Reports who prepared a valuation on a recent comparable transaction basis. Where applicable,
further information about the assumptions made in determining fair values is disclosed in the notes specific to that
asset or liability.
Exploration, evaluation and development expenditure
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised at cost or fair value, as
exploration and evaluation assets on an area of interest basis. Costs incurred before the Group has obtained the legal
rights to explore an area are recognised in the statement of comprehensive income.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
•
the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
•
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable
assessment of the existence or other wise of economically recoverable reserves and active and significant
operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility
and commercial viability and facts and circumstances suggest that the carrying amount exceeds the recoverable
amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating
units to which the exploration activity relates. The cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are
demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment
and then reclassified from exploration and evaluation expenditure to mining property and development assets within
property, plant and equipment.
Annual Report 2024 Nickel Industries 45
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Financial instruments
Non-derivative financial assets
The Group initially recognises loans and receivables on the date that they are originated. All other financial assets
(including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the
Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially
all the risks and rewards of ownership of the financial asset are transferred. Any interest in such transferred financial
assets that is created or retained by the Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the Statement of Financial Position when, and
only when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realise
the asset and settle the liability simultaneously.
On initial recognition, a financial asset is classified as measured at:
•
amortised cost;
•
fair value through other comprehensive income (‘FVOCI’) – equity investment; or
•
fair value through profit or loss (‘FVTPL’).
Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business
model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first
reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both the following conditions and is not designated as fair
value through profit or loss if:
•
it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
•
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present
subsequent changes in the investment’s fair value through other comprehensive income. This election is made on an
investment-by-investment basis.
All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as
described above are measured at fair value through profit or loss. This includes all derivative financial assets. On initial
recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be
measured at amortised cost or at fair value through other comprehensive income as at fair value through profit or loss if
doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Subsequent measurement and gains and losses
Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective
interest method. The amortised cost is reduced by impairment losses. Interest
income, foreign exchange gains and losses and impairment are recognised in
profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Equity instruments at FVOCI
These assets are subsequently measured at fair value. Dividends are
recognised as income in profit or loss unless the dividend clearly represents a
recovery of part of the cost of the investment. Other net gains and losses are
recognised in other comprehensive income and are never reclassified to profit
or loss.
Financial assets at FVTPL
These assets are subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognised in profit or loss.
46
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Changes in material accounting policies
All new standards and interpretations effective for periods commencing 1 January 2024 have been adopted by the
Group in the preparation of these financial statements. The policy for recognising and measuring income taxes has been
impacted by the below:
The Group has adopted AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform
– Pillar Two Model Rules which provides a temporary mandatory exception from deferred tax accounting effective
immediately. The Company has assessed the implications of the Pillar Two global minimum tax rules under IAS12 and
recognised an estimated tax expense and corresponding liability in relation to earnings in the jurisdiction of Hong Kong
in 2024. See Note 11 for further details.
The Group also applied Classification of Liabilities as Current or Non-Current (Amendments to AASB 101) and Non-
current Liabilities with Covenants (Amendments to AASB 101) for the first time in the current year. The amendments
clarify certain requirements for determining whether a liability is classified as current or non-current and introduce new
disclosures for non-current loan liabilities that are subject to covenants within 12 months after the end of the reporting
period. Adopting the amendments resulted in a change in the accounting policy for classifying liabilities that can be
settled in a Group entity’s own shares. See Note 15 for disclosures about the Group’s non-current loans that are subject
to covenants.
New standards and interpretations
A number of new standards, amendments to standards and interpretations are able to be early adopted for annual
periods beginning after 1 January 2024 and have not been applied in preparing these consolidated financial statements.
None of these are expected to have a significant effect on the financial statements of the Group.
31 December 2024
$
31 December 2023
$
NOTE 4 - OTHER EXPENSES
Audit fees – KPMG audit of financial reports
833,438
656,463
Travel
462,054
590,050
Legal fees
1,846,892
1,726,813
Withholding tax expense*
10,724,042
12,142,786
Other
5,258,812
3,079,051
19,125,238
18,195,163
*
Refer to Note 2 for reclassification of prior period expenses.
Annual Report 2024 Nickel Industries 47
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
31 December 2024
$
31 December 2023
$
NOTE 5 - FINANCIAL INCOME AND FINANCE
EXPENSE
Interest income
13,202,476
13,520,610
Interest expense*
(91,748,931)
(69,101,465)
Foreign exchange loss
(16,450,042)
(3,319,311)
Financing expenses^
-
(18,476,640)
(94,996,497)
(77,376,806)
*
Includes bond and debt issue costs of $8,016,056 which are being expensed under the effective interest rate method. Refer to Note 15 for
further details.
^
As detailed in Note 15, during the prior period the Company completed a $400M issuance of senior unsecured notes, and at the same time
purchased and cancelled the Company’s $225M senior secured notes and completed a tender offer for $80.082M of the $325M senior
unsecured notes which matured in April 2024, with the costs associated with the repurchasing shown above.
NOTE 6 – TERM DEPOSITS AND CASH RESERVE
Term deposits
-
490,913,669
Cash reserve amount^
11,514,444
3,839,438
11,514,444
494,753,107
^
Under the terms of the Company’s bank facilities with PT Bank Negara Indonesia (Persero) Tbk (BNI) and DBS Bank Ltd (DBS), the
Company is required to hold a Debt Service Reserve Amount (DSRA), equivalent to an estimated three months of interest, with BNI and
DBS.
48
Nickel Industries Annual Report 2024
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
31 December 2024
$
31 December 2023
$
NOTE 7 – TRADE AND OTHER RECEIVABLES
Current
Sales taxes receivable*
119,526,900
41,175,913
Trade receivables^
226,105,614
287,329,936
345,632,514
328,505,849
Non-current
Sales taxes receivable*
49,498,824
101,374,795
49,498,824
101,374,795
*
The four RKEF entities have the following sales tax receivable (VAT) amounts outstanding at 31 December 2024: PT Hengjaya Nickel
Industry $9.9M, PT Ranger Nickel Industry $5.7M, PT Angel Nickel Industry $77.9M and PT Oracle Nickel Industry $75.5. PT Hengjaya Nickel
Industry and PT Ranger Nickel Industry are receiving VAT refunds regularly in the normal course of operations. Subsequent to the end of
the year PT Angel Nickel Industry received its VAT refund for 2022 of $36.4M). The non-current portion has been determined with reference
to expected timing to receive based on the Group’s current understanding of Government processing times.
^
Trade receivables are in the ordinary course of business and at 31 December 2024 are comprised as follows: Hengjaya Mine $4.7M
(excludes saprolite ore receivables which are eliminated on consolidation), Hengjaya Nickel Project $39.0M, Ranger Nickel Project $35.0M,
Angel Nickel Project $40.1M, Oracle Nickel Project $96.3M, and Tsing Creation $10.9M.
NOTE 8 - OTHER ASSETS
Current
Prepayments
34,939,009
35,807,947
Interest receivable*
1,063,823
2,103,421
36,002,832
37,911,368
Non-current
Prepayments
27,650,080
12,431,157
Loans*
23,103,774
12,500,000
Other
2,489,613
1,311,452
Advance payment^
15,000,000
15,000,000
68,243,467
41,242,609
*
Commencing in August 2021 the Company executed a series of facility agreements with PT Sinar Inti Pembangunan (PT SIP) and the
Company’s Indonesian partner at the Hengjaya Mine Adi Wijoyo, pursuant to which the Company has advanced funds to PT SIP to assist
in funding the development and acquisition of the Sampala project. In August 2021 the Company advanced $3.5M to PT SIP. Interest is
calculated at a rate of 8.5% p.a. The loan is secured and management assessed that no provision for impairment is required. In July 2022
the Company advanced to PT SIP an additional $2.0M to further advance the development of the Sampala project. Interest is calculated
at a rate of 10.0% p.a. In April 2023 the Company advanced an additional $2.0M, in August 2023 $5.0M and in November 2024 $3.35M.
Additionally, PT Hengjaya Mineralindo has advanced $4,961,781 for the development of the project, bringing the total funds advanced to
develop the project to $20.8M.
^
Option to invest in and construct a low-grade to high-grade nickel matte converter at Oracle Nickel.
Annual Report 2024 Nickel Industries 49
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
31 December 2024
$
31 December 2023
$
NOTE 9 - INVENTORY
Current
Inventory – Hengjaya mine nickel ore stockpiles
10,614,764
23,589,678
Inventory – nickel pig iron production raw materials
121,021,810
119,985,773
Inventory – nickel matte production raw materials
-
27,420,805
Inventory – nickel pig iron
8,182,112
20,461,078
Inventory – nickel matte
-
7,991,131
139,818,686
199,448,465
Non-current
Inventory – Hengjaya mine nickel ore stockpiles*
53,035,397
12,667,046
53,035,397
12,667,046
*
The carrying value of limonite ore not forecast to be delivered in the next 12 months has been classified as non-current.
During the year ended 31 December 2024, the Company’s 80% subsidiary PT Hengjaya Mineralindo supplied nickel
saprolite ore to the Company’s subsidiaries PT Hengjaya Nickel Industry, PT Oracle Nickel Industry and PT Ranger
Nickel Industry under monthly contracts to supply a minimum of between 80,000 to 100,000 wmt per month to each
entity for the year ended 31 December 2024. During 2024 PT Hengjaya Mineralindo also the supplied limonite ore to
the HNC and QMB HPAL projects operating within the IMIP, under monthly contracts to supply a minimum of between
20,000 to 200,000 wmt per month to each entity for the year ended 31 December 2024.
Nickel pig iron production raw materials include nickel ore acquired by PT Hengjaya Nickel Industry, PT Oracle Nickel
Industry and PT Ranger Nickel Industry from PT Hengjaya Mineralindo, operator of the Hengjaya Mine. This continues to
be valued at the PT Hengjaya Mineralindo cost of production.
Inventories are measured at the lower of cost and net realisable value.
NOTE 10 - PROFIT PER SHARE
Basic and diluted profit per share have been calculated using:
Net (loss)/profit for the year attributable to equity holders of the Company
(168,589,135)
121,597,563
Nº of shares
Nº of Shares
Weighted average number of ordinary shares (basic and diluted)
Issued ordinary shares at the beginning of the year
4,285,809,880
2,731,273,497
- Effect of shares issued on 24 January 2023
-
242,776,562
- Effect of shares issued on 3 March 2023
-
28,217,975
- Effect of shares issued on 28 July 2023
-
9,113,303
- Effect of shares issued on 3 August 2023
-
158,597,835
- Effect of shares issued on 22 September 2023
-
237,142,466
- Effect of shares issued on 20 September 2024
1,125,683
-
Weighted average number of shares at the end of the year
4,286,935,563
3,407,121,639
50
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
31 December 2024
$
31 December 2023
$
NOTE 11 - INCOME TAX EXPENSE
(Loss)/profit before tax – continuing operations
(173,459,765)
223,967,858
Prima facie income tax expense/(benefit) at the Australian tax rate of
30% (31 December 2023: 30%)
(52,037,929)
67,190,357
Increase in income tax expense/(benefit) due to:
- Effect of tax rates in foreign jurisdictions*
(6,659,883)
(61,017,348)
- Effect of change in tax rates in foreign jurisdictions
-
-
- Non-deductible/non-assessable income
56,854,888
22,298,662
- Effect of deferred tax assets for tax losses not brought to account
2,626,942
(7,880)
- Effect of net deferred tax assets not brought to account
1,516,075
(857,644)
- Global minimum top-up tax^
1,726,130
-
- Effect of foreign currency conversion
(2,766,647)
(518,315)
- Tax on remitted foreign earnings
15,077,025
20,676,650
Income tax expense – current and deferred
16,336,601
47,764,482
*
The current Indonesian company tax rate is 22% but each of the Company’s four RKEF projects currently operate under a holiday from
Indonesian Company income tax.
^
The top-up tax relates to the Group’s operations in Hong Kong, where the profit is not subject to Hong Kong profits tax and reduces its
effective tax rate to below 15 percent. See Global minimum top-up tax section below for further details.
Deferred tax liabilities have been recognised in respect of the
following items:
Opening balance
96,099,816
96,099,816
Reversal of deferred tax liability due to impairment of property plant and
equipment*
(31,887,224)
-
64,212,593
96,099,816
*
See Note 18 for further details.
Deferred tax assets have not been recognised in respect of the
following items:
Net deductible temporary differences
1,713,502
1,588,031
Tax losses
20,549,429
11,239,486
22,262,931
12,827,517
The deductible temporary differences and tax losses do not expire under the current tax legislation. Deferred tax assets
have not been recognised in respect of these items because it is not probable that future taxable profit will be available
against which the Company can utilise the benefits of the deferred tax asset. The Company does not have any franking
credits.
Annual Report 2024 Nickel Industries 51
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Global minimum top-up tax
The Group is subject to the global minimum top-up tax under Pillar Two tax legislation in Australia. The top-up tax
relates to the Group’s operations in Hong Kong, where the profit is not subject to Hong Kong profits tax and reduces its
effective tax rate to below 15 percent. The Group recognised a current tax expense of $1,726,130 related to the top-up
tax which is levied on the Company under the Income Inclusion Rule.9
As of 31 December 2024, Hong Kong was still undergoing legislative processes to implement domestic Pillar Two tax
legislation. It is expected that Hong Kong’s Pillar Two legislation which will implement a domestic minimum top-up tax
will be effective from 1 January 2025 and therefore, from 2025 Tsing Creation International Holding Limited will be liable
for the top-up tax in relation to its operations instead of the Company.
No top-up tax is required in relation to the Group’s operations in Australia, Singapore and Indonesia. This is on the basis
that Australia and Singapore satisfy the Routine Profits Test under the Transitional CbCR Safe Harbour Tests, deeming
the jurisdictional top-up tax to be zero, whilst Indonesia has an effective tax rate above 15 percent.
The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and
accounts for it as a current tax when it is incurred.
Current tax payable:
Income taxes payable
16,665,182
21,264,936
Indirect taxes payable
Value added taxes payable
731,100
1,792,249
Withholding taxes payable
3,376,729
1,725,042
Other taxes payable
798,176
1,310,019
21,571,187
26,092,246
9
Calculated as 15% of the Profit before Tax of $11,507,533.
52
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
31 December 2024
$
31 December 2023
$
NOTE 12 - PROPERTY, PLANT AND EQUIPMENT
Furniture and fittings
Furniture and fittings – cost
666,908
627,671
Accumulated depreciation
(556,218)
(450,878)
Net book value
110,690
176,793
Mine infrastructure assets
Mine infrastructure assets – cost
34,047,169
33,926,262
Accumulated depreciation
(4,608,294)
(2,765,748)
Net book value
29,438,875
31,160,514
Buildings and land
Buildings – cost
369,896,777
360,046,559
Accumulated depreciation
(50,837,315)
(32,958,469)
Net book value
319,059,462
327,088,090
Mining properties
Mining properties – cost
34,498,562
34,490,356
Accumulated amortisation
(10,944,428)
(9,397,582)
Net book value
23,554,134
25,092,774
Office equipment
Office equipment – cost
2,853,731
2,377,321
Accumulated depreciation
(1,906,736)
(1,511,019)
Net book value
946,995
866,302
Plant and machinery
Plant and machinery – cost
1,523,723,313
1,680,189,315
Accumulated depreciation
(328,490,058)
(228,432,408)
Net book value
1,195,233,255
1,451,756,907
Motor vehicles
Motor vehicles – cost
1,177,160
1,125,289
Accumulated depreciation
(790,560)
(713,330)
Net book value
386,600
411,959
Construction in progress
Construction in progress
3,922,473
217,759
Accumulated depreciation
-
-
Net book value
3,922,473
217,759
Total property, plant and equipment
1,572,652,484
1,836,771,098
Annual Report 2024 Nickel Industries 53
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Impairment
The Directors completed impairment assessments over the carrying value of the Group’s property, plant and equipment
assets at 31 December 2024, and concluded that impairment charges in relating to the carrying value of goodwill
and property plant and equipment for the Hengjaya Nickel and Ranger Nickel projects was warranted. The Company
recognised an impairment of $97,697,777 against the carrying value of property, plant and equipment at the Hengjaya
Nickel Project and $83,479,629 against the carrying value of property, plant and equipment at the Ranger Nickel Project.
Further details on the impairment testing of the cash generating units which contain goodwill is outlined in Note 18.
Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below.
31 December 2024
$
31 December 2023
$
Furniture and fittings
Carrying amount at beginning of year
176,793
276,422
Additions
39,237
28,877
Depreciation
(105,340)
(128,506)
Net book value
110,690
176,793
Mine infrastructure assets
Carrying amount at beginning of year
31,160,514
5,654,422
Additions
120,908
26,371,362
Depreciation
(1,842,547)
(865,270)
Net book value
29,438,875
31,160,514
Buildings and land
Carrying amount at beginning of year
327,088,090
192,910,955
Additions
10,147,004
150,385,160
Depreciation
(18,175,632)
(16,208,025)
Net book value
319,059,462
327,088,090
Mining properties
Carrying amount at beginning of year
25,092,774
24,236,775
Additions
8,208
2,463,154
Amortisation
(1,546,848)
(1,607,155)
Net book value
23,554,134
25,092,774
Office equipment
Carrying amount at beginning of year
866,302
790,648
Additions
476,410
455,314
Depreciation
(395,717)
(379,660)
Net book value
946,995
866,302
54
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
31 December 2024
$
31 December 2023
$
Plant and machinery
Carrying amount at beginning of year
1,451,756,907
985,090,214
Impairment
(181,177,407)
-
Additions
29,008,192
557,183,813
Disposal
(3,318,811)
-
Depreciation
(101,035,626)
(90,517,120)
Net book value
1,195,233,255
1,451,756,907
Motor vehicles
Carrying amount at beginning of year
411,959
393,003
Additions
159,806
214,818
Depreciation
(185,165)
(195,862)
Net book value
386,600
411,959
Construction in progress
Carrying amount at beginning of year
217,759
712,756,965
Additions
4,955,424
39,882,355
Disposal
(7,921)
-
Transfers^
(1,242,789)
(752,421,561)
Net book value
3,922,473
217,759
Total property, plant and equipment
1,572,652,484
1,836,771,098
^
Balances in construction in progress are transferred into other categories, as additions, on commissioning of projects, or when available
for use in a manner in which management intended.
Annual Report 2024 Nickel Industries 55
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
31 December 2024
$
31 December 2023
$
NOTE 13 - EXPLORATION AND EVALUATION ASSETS
Sampala project
39,426,214
3,246,611
Siduarsi project
16,785,564
21,638,310
56,211,778
24,884,921
The Company is advancing the exploration, development and acquisition of both the Sampala and Siduarsi nickel
ore projects in, Indonesia. The recoverability of the carrying amount of the exploration and evaluation assets is
dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of
interest.
NOTE 14 - TRADE AND OTHER PAYABLES
Current
Creditors
182,038,005
175,627,034
Accruals
8,857,094
12,257,929
Other
3,873,309
4,873,962
194,768,408
192,758,925
NOTE 15 - BORROWINGS
Current
Senior Unsecured Notes – April 2024
-
244,345,619
Senior Unsecured Notes – October 2028
44,000,000
-
Interest on Senior Unsecured Notes – October 2028
8,750,000
8,750,000
Interest on BNI loan facility - October 2028
2,332,680
193,911
Interest on BNI loan facility - May 2029
4,211,626
-
Interest on Senior Unsecured Notes – April 2024
-
3,979,918
Bank facility – October 2028
66,150,000
-
Bank facility – May 2029
10,937,500
-
136,381,806
257,269,448
Non-current
Senior Unsecured Notes – October 2028
350,904,857
393,406,866
Working Capital Loan – September 2025
-
7,800,000
Interest on Working Capital Loan – September 2025
-
203,320
Bank Facility – October 2028
330,579,115
186,343,794
Bank facility – May 2029
236,696,642
-
918,180,614
587,753,980
56
Nickel Industries Annual Report 2024
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Senior Unsecured Notes October 2028
In April 2023, as part of a refinancing to extend the Company’s debt maturity profile, the Company issued $400,000,000
senior unsecured notes (‘Senior Unsecured Notes October 2028’). At the same time the Company made a tender
offer (‘Concurrent Tender Offer’) for its existing Senior Unsecured Notes (maturing April 2024) and purchased the
outstanding $225,000,000 of Senior Secured Notes. Key terms of the Senior Unsecured Notes October 2028 are as
follows:
•
Issue size of $400,000,000.
•
Coupon interest rate of 11.25% per annum.
•
Interest is payable on a semi-annual basis in arrears.
•
11% amortisation in April and October each year commencing on 21 October 2025.
•
Final Maturity Date of 21 October 2028.
The Senior Unsecured Notes include a covenant that needs to be complied within 12 months of the reporting date.
The covenant states that at the half year and full year reporting period, the Group’s Fixed Coverage Ratio (Attributable
EBITDA to Fixed Charges) does not exceed 2.5x, otherwise the notes will be repayable on demand. The Group expects
to comply with the covenants within 12 months after the reporting date.
Senior Unsecured Notes April 2024
In April 2024 the Company repaid the principal balance of $244,918,000 of the Senior Unsecured Notes April 2024, as
well as associated interest.
Bank facility October 2028
In October 2023 the Company executed financing facilities totalling $400,000,000 with Indonesian bank PT Bank
Negara Indonesia (Persero) Tbk (BNI) to support the Company’s funding obligations in relation to the ENC Project.
The facilities comprise a 5-year senior term loan facility (‘the Facility’) of $350,000,000, split across two tranches:
•
tranche A: $200,000,000 (secured against the Company’s Angel Nickel Project and the Shareholder Loans); and
•
tranche B: $150,000,000 (unsecured).
In addition, the facilities include a $50,000,000 revolving credit facility (RCF), for general working capital purposes.
The interest rate applicable on the 2028 Facility is a margin above the Secured Overnight Financing Rate (SOFR)
(currently ~5.3%), according to the following schedule: (i) initial 12-month period: 2.00% (ii) months 12 -18: 3.00% and (iii)
18 months onwards: 3.50%.
The margin applicable to the RCF is 3.00%. Amortisation of both tranche A and tranche B will commence 18 months
after the signing of the Facility Agreement (i.e. in April 2025), with 6.3% to be paid every three months until the final
maturity date of the 2028 Facility in October 2028.
In March 2024, the Company drew down the remaining $10,200,000 of tranche A and the $150,000,000 of tranche B.
Transaction costs totalled $6,290,017. In July 2024, the Company drew down the $50,000,000 RCF. Transaction costs
totalled $1,132,182.
Annual Report 2024 Nickel Industries 57
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Bank facility May 2029
In May 2024, the Company executed a $250,000,000, unsecured 5-year term loan facility (the 2029 Facility), jointly
provided by tier-1 banks BNI and DBS Bank Ltd (DBS).
Following the repayment in April 2024 of the $245,000,000 balance of the Company’s April 2024 notes, the 2029 Facility
was established to support the remaining funding requirements for the Company’s acquisition of a 55% equity interest
in the ENC project.
The interest rate applicable for the 2029 Facility will be a margin above the SOFR, according to the following schedule: (i)
initial 12- month period: 2.00% (ii) months 12 -18: 3.00% and (iii) 18 months onwards: 3.50%. Amortisation will commence
6 months after the signing of the Facility Agreement (i.e. in November 2025), with 4.375% to be paid every three months
until the final maturity date of the 2029 Facility in May 2029.
In July 2024, the Company drew down the $250,000,000. Transaction costs totalled $3,936,667.
Both bank facilities include covenants that need to be complied within 12 months of the reporting date. The covenants
state that at the half year and full year reporting period, the Group’s Leverage (Net Debt to Consolidated EBITDA)
does not exceed 2.5x, Debt Service Coverage Ratio (Cashflow to Debt Service) is less than 1.3x, Debt to Equity does
not exceed 1.5x and Security Coverage Ratio from Angel Nickel Industry for the $250,000,000 bank facility is not less
than 1.75x, otherwise the loan will be repayable on demand. The Group expects to comply with the covenants within 12
months after the reporting date.
Oracle Nickel working capital loans
Commencing in October 2022, the indirect shareholders of Oracle Nickel, Nickel Industries and Decent Resource,
have provided working capital loans to Oracle Nickel totalling $26 million to fund operations through the ramp-up
commissioning phase of operations. These loans are proportionate to the shareholders interest in Oracle Nickel at the
time of the loans i.e. Nickel Industries provided 70% of the total amount, $18.2 million and Decent Resource provided
30%, $7.8 million. Oracle Nickel paid off the loans in August 2024, $18.2 million to Nickel Industries, and $7.8 million to
Decent Resource. Interest was charged at a rate of 2.5% per annum up to 31 December 2023 and from 1 January 2024,
the interest rate was TERM SOFR 6M minus 50 basis points.
The terms and conditions of the outstanding borrowings are as follows:
Currency
Nominal
interest
rate
Year of
maturity
Carrying
Value
31 December
2024
$
Face
Value
31 December
2024
$
Carrying
Value
31 December
2023
$
Face
Value
31 December
2023
$
Senior
Unsecured Notes
US$
6.5%
2024
-
-
248,325,536
244,918,000
Senior
Unsecured Notes
US$
11.25%
2028
403,654,857
400,000,000
402,156,866
400,000,000
Bank Facility
October 2028
US$
7.51%*
2028
399,061,795
400,000,000
186,537,706
189,800,000
Bank Facility
May 2029
US$
6.59%*
2029
251,845,768
250,000,000
-
-
Oracle working
capital loan
US$
4.75%
2025
-
-
8,003,320
7,800,000
Total interest-
bearing liabilities
1,054,562,420
1,050,000,000
845,023,428
842,518,000
*
Interest rate charged on Facility A as at 31 December 2024.
A number of financial and non-financial covenants exist for both the Notes and the Bank Facilities. The Group has
assessed that they are in compliance with these covenants at year end.
58
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Number of shares
$
NOTE 16 - ISSUED CAPITAL AND RESERVES
Ordinary shares on issue at 31 December 2023 - fully paid
4,285,809,880
2,032,927,026
Issue of shares
4,000,000
2,300,428
Ordinary shares on issue at 31 December 2024 - fully paid
4,289,809,880
2,035,227,454
Year ended 31 December 2024
In September 2024, the Company issued 4,000,000 shares to Eloquent Enterprises, valued at A$0.845 per share, based
on the market price, as consideration for the acquisition of an indirect interest in 51% of the Siduarsi project.
Year ended 31 December 2023
In January 2023, through a placement to institutional investors the Company issued 259,103,641 shares at A$1.02 per
share for cash totalling A$264,285,714 (equivalent to $185,740,000). There were no amounts unpaid on the shares
issued and the share issue costs amounts to $4,737,993.
In March 2023, through a Share Purchase Plan the Company issued 33,880,135 shares for cash totalling A$34,557,738
(equivalent to $23,390,208). There were no amounts unpaid on the shares issued and the share issue costs amounts to
$206,228.
In August 2023, following shareholder approval at an EGM held in July 2023, the Company issued 381,365,628 at A$1.02
per share to Decent International for a 10% interest in the HNC project. Consideration was equivalent to $270,000,000.
Additionally, also following shareholder approval the Company issued 2,000,000 shares to Director Mark Lochtenberg
and 21,186,979 shares to Shanghai Wanlu, an entity in which director Yuanyuan Xu has a beneficial interest. The
issuances were at A$1.02, equivalent to $15,717,482. There were no amounts unpaid on the shares issued and the share
issue costs amounts to $179,935.
In September 2023, through a placement to PT Danusa Tambang Nusantara, the Company issued 857,000,000 shares
at A$1.10 per share for cash totalling A$942,700,000 (equivalent to $604,082,160). There were no amounts unpaid on the
shares issued and the share issue costs amounts to $3,321,495.
Annual Report 2024 Nickel Industries 59
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Options
There were no options granted, exercised or lapsed unexercised during the years ended 31 December 2024 or 31
December 2023.
Dividends
The company paid an interim unfranked dividend of A$0.025 per share during the year and a final unfranked dividend
for 2023 of A$0.025 during the year ended 31 December 2024 amounting to $142,731,425. Total dividends of A$0.05 was
paid or declared during the year ended 31 December 2024.
Ordinary shares
The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully
paid. The holders of ordinary shares are entitled to receive dividends as declared from time to time.
Reserves
31 December 2024
$
31 December 2023
$
Opening balance
19,065,940
19,144,965
Remeasurement of defined benefit obligation
(15,594)
(79,025)
19,050,346
19,065,940
60
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
NOTE 17 - INVESTMENTS IN EQUITY ACCOUNTED INVESTEES AND ASSOCIATED
INTANGIBLE ASSETS
31 December 2024
$
31 December 2023
$
Investment in Equity Accounted Investee
HNC
Opening balance
185,939,410
-
Acquisition of a 10% interest in PT HNC
-
188,500,000
Share of profit/(loss) of associate
13,887,090
(2,560,590)
Carrying value of investment in HNC
199,826,500
185,939,410
Excelsior Nickel
Opening balance
341,300,000
Acquired Option to develop Excelsior Nickel
-
25,000,000
Acquisition of a 5.5% interest in Excelsior Nickel
-
126,500,000
Acquisition of an additional 8.25% interest in Excelsior Nickel
-
189,800,000
Acquisition of an additional 13.75% interest in Excelsior Nickel
316,300,000
-
Acquisition of an additional 16.5% interest in Excelsior Nickel
379,500,000
-
Share of loss of associate
(6,651,583)
-
Carrying value of investment in Excelsior Nickel
1,030,448,417
341,300,000
1,230,274,917
527,239,410
Intangible Asset
HNC
Opening balance
79,745,215
-
Acquisition of right to offtake from PT HNC
-
81,500,000
Amortisation
(4,679,426)
(1,754,785)
75,065,789
79,745,215
Annual Report 2024 Nickel Industries 61
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Excelsior Nickel Cobalt (ENC)
In 2023 the Company executed an acquisition agreement (Acquisition Agreement) to acquire a 55% equity interest
in the Excelsior Nickel Cobalt HPAL project (ENC) from Decent Resource through the acquisition of shares in a
Singaporean incorporated holding company, Excelsior International Investment Pte. Ltd (EII), and shareholder loans
(Shareholder Loans) due or owning by EII (and/or its subsidiaries) (ENC Acquisition). EII directly and indirectly owns
100% of the issued share capital of PT Fajar Metal Industry, a private Indonesian company limited by shares which will
develop and own the ENC Project, being constructed at the IMIP in Indonesia. See Note 27 for details on the Company’s
obligations to acquire a 55% interest in the Project.
In 2023, the Company initially paid the $25M option payment for the ENC projects and then as per the terms of the
Acquisition Agreement the Company paid US$126.5M to Shanghai Decent and its associates for an initial 5.5% equity
interest in the ENC project and in December 2023 the Company paid the $189.8M to move to a 13.75% equity interest in
the ENC project. During the year, the Company paid an additional $695.8M to move to a 44% equity interest in the ENC
project.
The following table summarises the information relating to Excelsior Investment International Pte Ltd and its controlled
entities of which the Group has a 44% ownership interest as at 31 December 2024 under the equity method:
Excelsior Investment International Pte Ltd
and its controlled entities
31 December 2024
$
31 December 2023
$
Current assets
570,845,957
994,417
Non-current assets
2,529,049,394
2,481,436,940
Current liabilities
(40,967,131)
(249,539)
Non-current liabilities
(717,000,000)
-
Net assets (100%)
2,341,928,220
2,482,181,818
Group’s share of net assets 44% (December 2023: 13.75%)
1,030,448,417
341,300,000
Carrying amount of interest in associate
1,030,448,417
341,300,000
Huayue Nickel Cobalt (HNC)
In August 2023, following shareholder approval at an EGM held in July 2023 the Company completed the acquisition of
an indirect 10% interest in the Huayue Nickel Cobalt HPAL project (HNC), located in the IMIP in Indonesia, through the
issuance to Shanghai Decent affiliate company Decent Investment International Private Limited 381,365,628 ordinary
shares in Company at an issue price of A$1.02, amounting to $270M. Under the acquisition agreement the Company
acquired 100% of the issued capital of Tsing Creation International Holding Limited (Tsing Creation) from Newstride
Development Limited, an affiliate of Shanghai Decent. Tsing Creation is the holder of a direct 10% interest in PT Huayue
Nickel Cobalt, the owner and operator of the HNC project.
Whilst the Group owns less than 20 percent of the equity and present voting rights, the Group has determined that it
has significant influence because it has meaningful representation on the Board, and other rights under the Agreement.
62
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
As part of the acquisition in August 2023 of a 10% interest in the HNC project, the Group also obtained a right to a
fixed proportionate share of the MHP offtake of HNC, as per its equity interest, at a discount to the market price which
has separately been recognised as an intangible asset. The consideration transferred under the agreement has been
allocated as follows:
Consideration
transferred
$
Investment in associate – equity method
188,500,000
Other intangible – offtake agreement
81,500,000
270,000,000
The following table summarises the information relating to PT HNC of which the Group has a 10% ownership interest as
at 31 December 2024 under the equity method:
PT Huayue Nickel Cobalt
31 December 2024
$
31 December 2023
$
Current assets
555,791,316
474,005,188
Non-current assets
2,242,520,030
2,397,893,104
Current liabilities
(93,914,552)
(149,478,590)
Non-current liabilities
(706,131,794)
(863,025,605)
Net assets (100%)
1,998,265,000
1,859,394,097
Group’s share of net assets (10%)
199,826,500
185,939,410
Carrying amount of interest in associate
199,826,500
185,939,410
Revenue
977,465,707
346,298,318
Profit/(loss) from continuing operations (100%)
138,870,899
(25,605,901)
Other comprehensive income (100%)
-
-
Total comprehensive profit/(loss) (100%)
138,870,899
(25,605,901)
Total comprehensive profit/(loss) (10%)
13,887,090
(2,560,590)
Group’s share of total comprehensive loss
13,887,090
(2,560,590)
Movement in the intangible asset acquired since date of acquisition is as follows:
31 December 2024
$
31 December 2023
$
Carrying amount at beginning of the year
79,745,215
-
Additions
-
81,500,000
Amortisation
(4,679,426)
(1,754,785)
75,065,789
79,745,215
Amortisation on the intangible asset has been recorded under Cost of Sales in the Consolidated Statement of Profit or
Loss and Other Comprehensive Income.
Annual Report 2024 Nickel Industries 63
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
NOTE 18 - CONTROLLED ENTITIES
Acquisition of controlled entities
Siduarsi Project
In September 2024, the Company completed the acquisition of an initial 51% interest in the Siduarsi Project, through
the acquisition of a 52.4% interest in Iriana Cendrawana Pte Ltd, PT Mutiara Iriana Minerals and Tanis Resources S.A
(collectively ‘the Siduarsi Project entities’). The Siduarsi Project entities in turn held a 97.5% interest in PT Iriana Mutiara
Mining, the Indonesian operating entity which holds the Siduarsi Contract of Work (CoW).
The Company had originally paid A$500,000 on signing the Definitive Agreement for acquiring the CoW. In moving
to a 51% interest, the Company issued four million shares in the Company at an issue price of A$0.845 per share
($2,300,425), and had met the expenditure earn-in requirement (spending A$5 million in exploration on the Siduarsi
Project over a 24 month period).
The acquisition has been accounted for as an acquisition of assets rather than a business combination.
Particulars in relation to controlled entities:
Company
incorporation and
tax jurisdiction
Ordinary shares –
Group interest
31 December 2024
%
Ordinary shares –
Group interest
31 December 2023
%
Parent entity
Nickel Industries Limited
Australia
Controlled entities
PT Hengjaya Mineralindo
Indonesia
80
80
Hengjaya Holdings Private Limited
Singapore
80
80
Hengjaya Nickel Private Limited
Singapore
80
80
PT Hengjaya Nickel Industry
Indonesia
80
80
Ranger Investment Private Limited
Singapore
80
80
Ranger Nickel Private Limited
Singapore
80
80
PT Ranger Nickel Industry
Indonesia
80
80
Angel Capital Private Limited
Singapore
80
80
Angel Nickel Private Limited
Singapore
80
80
PT Angel Nickel Industry
Indonesia
80
80
Oracle Development Private Limited
Singapore
80
80
Oracle Nickel Private Limited
Singapore
80
80
PT Oracle Nickel Industry
Indonesia
80
80
Tablasufa Pty Ltd
Australia
100
100
Iriana Cendrawana Pte Ltd
Singapore
52.4
-
PT Iriana Mutiara Mining
Indonesia
51
-
PT Mutiara Iriana Minerals
Indonesia
52.4
-
Tanis Resources S.A
British Virgin Islands
52.4
-
Tsing Creation International Holding Limited
Hong Kong
100
100
64
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Non-controlling interests
The following table summarises the information relating to the Group’s subsidiaries that have a material non-controlling interest, before any intra-group eliminations.
Hengjaya Holdings
Private Limited and
its controlled entities
Ranger Investment
Private Limited and
its controlled entities
Angel Capital
Private Limited and
its controlled entities
Oracle Development
Private Limited and
its controlled entities
December
2024
$
December
2023
$
December
2024
$
December
2023
$
December
2024
$
December
2023
$
December
2024
$
December
2023
$
Non-controlling interest
percentage
20%
20%
20%
20%
20%
20%
20%
20%
Current assets
103,309,979
136,098,544
91,887,643
121,102,309
222,260,014
250,253,744
191,756,040
241,189,948
Non-current assets
137,008,390
271,983,220
136,723,379
256,929,893
604,511,859
645,136,914
744,795,216
710,583,740
Current liabilities
(19,214,011)
(15,384,468)
(17,154,278)
(15,281,375)
(82,816,359)
(86,880,192)
(102,604,775)
(121,074,908)
Non-current liabilities
(8,546,009)
(25,740,818)
(8,379,099)
(23,071,514)
(22,577,269)
(22,577,269)
(24,766,240)
(24,766,240)
Net assets
212,558,349
366,956,478
203,077,645
339,679,313
721,378,245
785,933,197
809,180,241
805,932,540
Carrying amount of
non-controlling interest(2)
43,113,959
73,810,988
38,417,031
65,650,864
148,586,439
159,345,976
166,882,158
160,025,857
Revenue(1)
300,498,419
320,229,496
207,053,792
271,914,811
530,184,161
728,895,111
584,548,479
539,089,585
(Loss)/profit
(127,253,322)
27,159,065
(109,744,995)
5,214,687
28,492,047
120,743,394
36,309,825
47,666,525
Other comprehensive
income
-
-
-
-
-
-
-
-
Total comprehensive
income
(127,253,322)
27,159,065
(109,744,995)
5,214,687
28,492,047
120,743,394
36,309,825
47,666,525
(Loss)/profit allocated to
non-controlling interest(2)
(25,450,664)
5,431,813
(21,948,999)
2,625,787
5,698,409
24,148,679
7,261,965
11,004,735
Other comprehensive
profit/(loss) allocated to
non-controlling interest
-
-
-
-
-
-
-
(1) Includes saprolite nickel ore sales from the Company’s controlled entity PT Hengjaya Mineralindo to the Company’s controlled entities PT Hengjaya Nickel Industry, PT Oracle Nickel Industry and
PT Ranger Nickel Industry.
(2) After intra-group eliminations.
Annual Report 2024 Nickel Industries 65
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
PT Hengjaya Mineralindo
Siduarsi Project entities
Total
December
2024
$
December
2023
$
December
2024
$
December
2023
$
December
2024
$
December
2023
$
Non-controlling
interest percentage
20%
20%
49%
-
Current assets
84,413,986
101,084,760
633,451
-
694,261,113
849,729,305
Non-current assets
128,219,951
67,274,229
20,316,186
-
1,771,574,981
1,951,907,996
Current liabilities
(43,087,474)
(45,587,663)
(7,841,803)
-
(272,718,700)
(284,208,606)
Non-current liabilities
(1,909,982)
(3,104,819)
(7,119,831)
-
(73,298,430)
(99,260,660)
Net assets
167,636,481
119,666,507
5,988,003
-
2,119,818,964
2,418,168,035
Carrying amount
of non-controlling
interest(2)
32,330,829
22,754,838
2,881,950
-
432,212,366
481,588,522
Revenue(1)
261,133,320
204,452,613
-
-
1,883,418,171
2,064,581,616
(Loss)/Profit
67,346,955
57,427,273
(308,269)
-
(105,157,759)
258,210,944
Other comprehensive
income
(19,493)
(98,781)
-
-
(19,493)
(98,781)
Total comprehensive
income
67,327,462
57,328,492
(308,269)
-
(105,177,252)
258,112,163
Profit allocated to non-
controlling interest(2)
13,378,736
11,394,799
(146,678)
-
(21,207,231)
54,605,813
Other comprehensive
profit/(loss) allocated
to non-controlling
interest
(3,899)
(19,756)
-
-
(3,899)
(19,756)
(1) Includes saprolite nickel ore sales from the Company’s controlled entity PT Hengjaya Mineralindo to the Company’s controlled entities PT
Hengjaya Nickel Industry, PT Oracle Nickel Industry and PT Ranger Nickel Industry.
(2) After intra-group eliminations.
66
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Goodwill
31 December 2024
$
31 December 2023
$
Opening balance
102,748,404
102,748,404
Impairment
(55,404,895)
-
47,343,509
102,748,404
The goodwill balance amounting to $47,343,509 pertains to the Angel Nickel and Oracle Nickel RKEF Projects, which
are considered to be individual cash generating units (CGUs). As a result of the compressed operating margins and
decreased production at Hengjaya Nickel and Ranger Nickel, along with a reduction in market analyst nickel forecasts, a
recoverable amount was determined for the Hengjaya Nickel and Ranger Nickel CGUs which resulted in an impairment
to the carrying amounts of $126,917,127 and $109,665,175 respectively. The impairment has been allocated as follows:
•
Hengjaya Nickel: Goodwill ($29,219,349), property plant and equipment ($97,697,777); and
•
Ranger Nickel: Goodwill ($26,185,545), property plant and equipment ($83,479,629).
As a result of the impairments to property, plant and equipment the deferred tax liability was revalued resulting in an
income tax benefit of $31,887,224. The post-tax impairment loss recognised is therefore $204,695,078. The Directors
consider there to be no impairment of the Angel Nickel and Oracle Nickel CGUs, on the basis that the recoverable value,
is higher than the carrying value of the respective CGUs.
The recoverable amount for each CGU was based on its value-in-use as determined through a discounted cash flow
model. The key assumptions used in the underlying cash flows of each CGU (RKEF plant) are set out below. Nickel price
and cash cost estimates used in the cash flows are based on a ‘steady state’ of operations:
CGU
Carrying
amount of CGU
(inc. impairment)
Carrying
amount of
goodwill
Impairment
(post tax)
Nickel
Production
5-yr
average
NPI price
5-yr
average
costs
Discount
rate - real
post tax
Remaining
useful life
(years)
Hengjaya
Nickel
$181,581,156
$-
$109,722,318
18,000t
$12,114/t
$11,080/t
10%
15 years
Ranger
Nickel
$183,597,777
$-
$94,972,760
18,000t
$12,114/t
$11,080/t
10%
15 years
Angel
Nickel
$711,101,557
$22,577,269
$-
48,600t
$12,114/t
$9,560/t
10%
18 years
Oracle
Nickel
$825,406,399
$24,766,240
$-
48,600t
$12,114/t
$9,560/t
10%
19 years
The cash flow projections include specific estimates for the first five years and a constant margin thereafter for the
remaining useful life of the RKEF project. NPI prices have been forecast based on an average of external market analyst
forecast nickel prices. The forecast cash costs incorporate savings based on an external market analyst forecast coal
prices. Forecasts prices and costs are in real terms.
Hengjaya Nickel and Ranger Nickel CGUs
Following the impairment loss recognised in the Hengjaya Nickel and Ranger Nickel CGUs, the recoverable amount was
equal to the carrying amount. Therefore, any adverse movement in a key assumption individually would likely lead to
further impairment.
Angel Nickel and Oracle Nickel CGUs
The Angel Nickel and Oracle Nickel CGUs benefit from lower operating costs as a result of newer technology, economies
of scale and captive electricity supply. These CGUs have demonstrated comparatively higher margins than Ranger
Nickel and Hengjaya Nickel over their operating life to date, which has been factored into the forecast for these CGUs.
Annual Report 2024 Nickel Industries 67
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
NOTE 19 - RELATED PARTIES
Key management personnel of the Group during the year ended 31 December 2024 are the following:
Norman Seckold
Chairman
Justin Werner
Managing Director
Chris Shepherd
Director and Chief Financial Officer
James Crombie
Director (Non-Executive)
Dasa Sutantio
Director (Non-Executive)
Muliady Sutio
Director (Non-Executive)
William Shangjaya
Director (Non-Executive)
Yuanyuan Xu
Director (Non-Executive)
Haijun Wang
Director (Non-Executive)
Emma Hall
Director (Non-Executive)
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to
each member of the Group’s key management personnel for the year ended 31 December 2024. The total remuneration
paid to key management personnel of the Group during the year is as follows:
Key Management Personnel compensation
31 December 2024
$
31 December 2023
$
Short term employee benefits
1,751,882
1,768,935
Other benefits
440,235
59,637
2,192,117
1,828,572
Key Management Personnel transactions
A number of key management persons, or their related parties, hold positions in other entities that result in them
having control or joint control over the financial or operating policies of those entities. A number of these entities
transacted with the Group during the year. The aggregate value of transactions and outstanding balances (excluding the
compensation noted above) relating to key management personnel and entities over which they have control or joint
control were as follows:
Transaction with Director related entity
Director Norman Seckold holds an interest in an entity, MIS Corporate Pty Limited (‘MIS’), which provided full
administrative services, including administrative, accounting, company secretarial and investor relations staff both
within Australia and Indonesia, rental accommodation, services and supplies, to the Group. Fees during 2024 were
charged at an agreed rate of A$50,000 per month (31 December 2023: A$38,000). Fees charged by MIS during the year
amounted to A$600,000 (31 December 2023: A$456,000). As at 31 December 2024 $50,000 (31 December 2023: A$0)
remained outstanding.
Transactions with Director of subsidiary company
Adi Wijoyo, the Company’s Indonesian operating partner at the Hengjaya Mine is a director of the company operating
the mine, PT Hengjaya Mineralindo, in which the Company holds an 80% interest. He is also the vendor of the Sampala
Project. The Company has advanced various loan amounts for the development of the Sampala Project. See Note 8 for
further details.
68
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Transaction with equity accounted associate
The Company holds a 10% interest in the HNC HPAL project, operating within the IMIP. During the year the Group
sold limonite ore totalling $5,498,261 (2023: $12,913,064) to the HNC HPAL project, operating within the IMIP. At 31
December 2024 there were no trade receivables outstanding from HNC (2023: $8,511,079).
As part of the acquisition agreement for the HNC HPAL project, the Company acquired a 100% interest in Tsing
Creation. During the year HNC sold mixed hydroxide precipitate (MHP) to Tsing Creation totalling $99,554,089 (2023:
$24,611,331). At 31 December 2024 there were $13,675,632 trade payables outstanding from Tsing Creation to HNC
(2023: $nil).
Transaction with other related entities
During the year ended 31 December 2024 the Group sold NPI and nickel matte totalling $1,597,916,911 (2023:
$1,760,925,421) to Shanghai Decent-related entities and $311,921,105 (2023: $358,900,532) of raw materials and services
and fixed assets were purchased from Shanghai Decent-related entities. At 31 December 2024 trade receivables of
$205,085,338 (2023: $269,985,290) from Shanghai Decent-related entities remained outstanding and was included in
the receivables balance, and trade payables of $50,599,70859,492,537 (2023: $33,535,530) to Shanghai Decent-related
entities remained outstanding and was included in the creditor’s balance.
Decent Resource, an associate of Shanghai Decent has provided working capital loans to Oracle Nickel totalling
$7,800,000 ($4,800,000 in 2023 and $3,000,000 in 2022). Interest was charged at a rate of 2.5% per annum up to 31
December 2023. From 1 January 2024, the interest rate shall be TERM SOFR 6M minus 50 basis points. Total interest
incurred by Oracle Nickel on the working capital loan from Decent Resource in 2024 totalled $191,845. During the period
Oracle Nickel fully repaid the working capital loan, $7,800,000 of principal and $362,469 of interest.
During the year ended 31 December 2024 dividend, interest and other distributions from the Company’s 80% owned
subsidiaries Hengjaya Holdings Private Limited, Ranger Investment Private Limited and Angel Capital Private Limited to
Shanghai Decent’s associates Decent Investment International Private Limited and Decent Resource Limited, totalled
$27,394,807.
Shanghai Decent and its associates hold 20% equity interests in the Angel Nickel, Hengjaya Nickel, Oracle Nickel and
Ranger Nickel RKEF project, which reflects the non-controlling interest in the Group amounting to $396,999,587 (2023:
$436,833,684) as at 31 December 2024.
Shanghai Decent and its associates are the Company’s collaboration partner at each of the Hengjaya Nickel, Ranger
Nickel, Angel Nickel and Oracle Nickel projects. Shanghai Decent and its associates also have responsibility for the
design and construction of the ENC project. Under the terms of the acquisition agreement for the ENC project the
Company has committed to acquiring a 55% interest in the ENC project for a total acquisition cost of $1,265M, plus the
$25M option fee paid. At 31 December 2024 the Company has acquired a 44% interest for $1,037.1M.
As a result of the above arrangements, the Group is economically dependent on Shanghai Decent and its associates.
Apart from the details disclosed in this note, no Director or other related party has entered into a material contract with
the Group during the year and there were no material contracts involving Director’s interests subsisting at year end.
Annual Report 2024 Nickel Industries 69
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
31 December 2024
$
31 December 2023
$
NOTE 20 - STATEMENT OF CASH FLOWS
(a) Reconciliation of cash and cash equivalents
Cash and cash equivalents as shown in the Statement of Cash Flows is
reconciled to the related items in the Statement of Financial Position as
follows:
Bank balances
210,953,629
284,053,495
(b) Reconciliation of net loss from ordinary activities after tax to net
cash used in operating activities
(Loss)/profit from ordinary activities after tax
(189,796,366)
176,203,376
Adjustments for:
Depreciation and amortisation
127,978,181
111,656,383
Foreign exchange loss
16,450,041
3,319,311
Borrowing costs
91,748,931
87,578,105
Impairment charges
236,582,302
-
Deferred tax benefit
(31,887,224)
-
Changes in assets and liabilities
Trade receivables and other assets
85,391,461
(182,119,720)
Inventory
19,261,428
(7,270,212)
Provisions
1,042,065
(1,073,548)
Trade and other payables
(75,377,482)
41,462,158
Net cash from operating activities
281,393,337
229,755,853
(c) Reconciliation of movements of liabilities to cash flows arising from financing activities
Liabilities
Equity
Total
$
Loans and borrowings
$
Share capital
$
Opening balance at 1 January 2024
845,023,428
2,032,927,026
2,877,950,454
Changes from financing activities
Proceeds from issue of shares
-
2,300,428
2,300,428
Proceeds from borrowings
460,200,000
-
460,200,000
Borrowing costs
(5,437,997)
-
(5,437,997)
Repayment of borrowings
(252,718,000)
-
(252,718,000)
Repayment of interest
(84,253,942)
-
(84,253,942)
Total changes from financing cash flows
117,790,061
2,300,428
120,090,489
Other changes
Finance expenses
83,732,875
-
83,732,875
Costs of issue expensed – non cash
8,016,056
-
8,016,056
Total other changes
91,748,931
-
91,748,931
Closing balance at 31 December 2024
1,054,562,420
2,035,227,454
3,089,789,874
70
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
NOTE 21 - FINANCIAL INSTRUMENTS DISCLOSURE
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. Risk management policies are established to identify and analyse the risks faced by the Group, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. These policies are reviewed regularly
to reflect changes in market conditions and the Group’s activities.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, currency risk and interest
rate risk. The summaries below present information about the Group’s exposure to each of these risks, their objectives,
policies and processes for measuring and managing risk, the management of capital and financial instruments.
Credit risk
Credit risk arises mainly from the risk of counterparties defaulting on the terms of their agreements. The carrying
amounts of the following assets represent the Group’s maximum exposure to credit risk in relation to financial assets:
Note
31 December 2024
$
31 December 2023
$
Cash and cash equivalents
20
210,953,629
284,053,495
Term deposits and cash reserve
6
11,514,444
494,753,107
Trade and other receivables
7
395,131,338
429,880,644
Loan and interest receivable
8
24,167,597
14,603,421
641,767,008
1,223,290,667
Cash and cash equivalents
The Group mitigates credit risk on cash and cash equivalents and term deposits and cash reserve by dealing with
regulated banks in Australia, China, Hong Kong, Indonesia and Singapore.
Trade and other receivables
Credit risk of trade and other receivables is low as it consists predominantly of saprolite and limonite nickel ore and
nickel pig iron and nickel matte sales. Saprolite ore sales are currently all to the Company’s 80% owned subsidiaries
PT Hengjaya Nickel Industry PT Oracle Nickel Industry or PT Ranger Nickel Industry. Nickel pig iron trade receivables
in 2024 were all from sales to three customers, Shanghai Decent, PT Indonesia Tsingshan Stainless Steel or PT Qing
Feng Ferrochrome, stainless steel producers operating at the IMIP and related parties of the Group, through Shanghai
Decent. Nickel matte trade receivables are from sales to one customer, PT Indonesia Guang Ching Nickel and Stainless
Steel Industry, a stainless steel producer operating at the IMIP and a related party of the Group, through Shanghai
Decent. Limonite ore sales are to Huayue Nickel Cobalt project and the QMB HPAL project, located within the IMIP.
MHP sales are to Golden Harbour International Pte. Ltd., located in Singapore. Additional amounts are recoverable from
Australian and Indonesian Taxation Authorities.
Annual Report 2024 Nickel Industries 71
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
The following are the contractual maturities of financial liabilities, including estimated interest payments:
Consolidated
Carrying
amount
$
Contractual
cash flows
$
Less than
one year
$
Between one
and five years
$
More than
five years
$
31 December 2024
Trade and other payables
(including tax)
216,339,595
216,339,595
216,339,595
-
-
Borrowings
1,054,562,420
1,319,737,094
212,063,864
1,107,673,230
-
1,270,902,015
1,536,076,689
428,403,459
1,107,673,230
-
31 December 2023
Trade and other payables
(including tax)
218,851,171
218,851,171
218,851,171
-
-
Borrowings
845,023,428
1,105,986,353
312,292,393
793,693,960
-
1,063,874,599
1,324,837,524
531,143,564
793,693,960
-
Ultimate responsibility for liquidity management rests with the Board of Directors. The Group manages liquidity risk
by maintaining adequate funding where possible and monitoring of future rolling cash flow forecasts of its operations,
which reflect management’s expectations of expected settlement of financial assets and liabilities.
Currency risk
The functional currency in 2024 was assessed as being United States dollars for all group entities. The Group is
exposed to foreign currency risks due to the fact that the domestic sales of its subsidiaries PT Hengjaya Mineralindo, PT
Hengjaya Nickel Industry, PT Oracle Nickel Industry and PT Ranger Nickel Industry are in Indonesian Rupiah (although
the underlying sale price is denominated in US dollars), liabilities of the Group are denominated in both Australian
dollars, Indonesian Rupiah and Singapore dollars and the issue of shares during the year was denominated in Australian
dollars.
72
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
The Group’s gross financial position exposure to foreign currency risk at 31 December is as follows:
31 December 2024
31 December 2023
Foreign currency
USD
Foreign currency
USD
IDR
Cash at bank
IDR1,923,886,615,583
$119,037,592
IDR974,040,604,882
$63,183,759
Accounts receivable
IDR2,837,124,209,427
$175,542,783
IDR3,463,863,892,549
$224,692,780
Other current assets
IDR2,930,800,849,749
$181,338,884
IDR2,896,861,383,941
$187,912,648
Provisions and accrual
IDR180,276,215,192
$11,154,319
IDR221,138,742,138
$14,344,755
Taxes payable
IDR187,193,737,594
$11,582,330
IDR303,658,280,925
$19,697,605
Trade and other payables
IDR1,798,790,405,072
$111,297,444
IDR1,978,211,043,256
$128,321,941
AUD
Cash at bank
A$1,305,864
$807,938
A$83,480,302
$56,850,086
Receivables
A$91,930
$56,877
A$107,953
$73,516
Provisions and accrual
A495,376
$306,489
A204,166
$139,037
Trade and other payables
A370,333
$229,125
A$166,113
$113,123
SGD
Cash at bank
SGD$100,618
$73,672
SGD$190,358
$144,320
Loan from Siduarsi NCI
SGD$8,628,870
$6,318,045
-
-
The following significant exchange rates applied during the year:
USD
Average rate
Reporting date spot rate
12 months to
31 December 2024
12 months to
31 December 2023
31 December 2024
31 December 2023
IDR
15,847
15,255
16,162
15,416
AUD
1.5216
1.507
1.6163
1.468
SGD
1.3381
1.3419
1.3658
1.3191
The following sensitivity analysis is based on the exchange rate risk exposures at balance date. At balance date, if the
exchange rate between the United States dollar and the Indonesian Rupiah, the Australian dollar or the Singaporean
dollar had moved, as illustrated in the table below, with all other variables held constant, the post-tax loss and equity
would have been affected as follows:
Post tax loss
(Higher)/Lower
31 December
2024
$
Total equity
(Higher)/Lower
31 December
2024
$
Post tax loss
(Higher)/Lower
31 December
2023
$
Total equity
(Higher)/Lower
31 December
2023
$
+ 10% higher USD to IDR exchange rate
34,188,516
34,188,516
31,342,487
31,342,487
- 5% lower USD to IDR exchange rate
(17,094,258)
(17,094,258)
(15,671,244)
(15,671,244)
+ 10% higher USD to AUD exchange rate
32,920
32,920
5,667,144
5,667,144
- 5% lower USD to AUD exchange rate
(16,460)
(16,460)
(2,833,572)
(2,833,572)
+ 10% higher USD to SGD exchange rate
(624,437)
(624,437)
14,432
14,432
- 5% lower USD to SGD exchange rate
312,219
312,219
(7,216)
(7,216)
Annual Report 2024 Nickel Industries 73
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
Interest rate risk
The Group’s exposure to market interest rate relates to cash assets.
At balance date, the Group had the following mix of financial assets and liabilities exposed to variable interest rate risk:
31 December 2024
$
31 December 2023
$
Financial assets
Cash and cash equivalents
20
210,953,629
284,053,495
Cash reserve amount
11,514,444
3,839,438
222,468,073
287,892,933
Financial liabilities
Borrowings
15
650,000,000
189,800,000
Sensitivity analysis
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit for the
period by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is
performed on the same basis for the comparative period.
31 December 2024
$
30 December 2023
$
(Loss)/Profit for the year
(1,728,502)
1,192,479
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business.
The Board ensures, where possible, costs are not incurred in excess of available funds and if required will seek to raise
additional funding through issues of shares or debt for the continuation of the Group’s operation.
The Group is not subject to externally imposed capital requirements.
74
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
NOTE 22 - PARENT ENTITY DISCLOSURES
As at, and throughout the financial year ended 31 December 2024, the parent entity of the Group was Nickel Industries
Limited.
Parent Entity
31 December 2024
$
Parent Entity
31 December 2023
$
Result of the parent entity
Net loss
(267,457,225)
(89,360,427)
Other comprehensive income
-
-
Total comprehensive loss
(267,457,225)
(89,360,427)
31 December 2024
$
31 December 2023
$
Financial position of the parent entity at year end
Current assets
63,318,715
644,463,864
Non-current assets
2,252,361,919
1,859,271,379
Total assets
2,315,680,634
2,503,735,243
Current liabilities
140,884,315
259,735,357
Non-current liabilities
918,435,313
579,750,660
Total liabilities
1,059,319,628
839,486,017
Net Assets
1,256,361,006
1,664,249,226
Equity
Share capital
2,035,227,452
2,032,927,026
Retained profits/(losses)*
(778,866,448)
(368,677,800)
Total Equity
1,256,361,006
1,664,249,226
*
During 2024 the Company made dividend payments totaling $142,731,425 (2023: $85,569,052) which is included within retained profits/
(losses) for the 2024 financial year.
At balance date, the Company has no capital commitments or contingencies (31 December 2023: $nil), other than as
outlined in Note 27.
Annual Report 2024 Nickel Industries 75
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
NOTE 23 - SEGMENT INFORMATION
Segment information is presented in respect of the Group’s management and internal reporting structure. Segment
results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items comprise interest bearing loans, borrowings and expenses, and corporate assets
and expenses. Segment capital expenditure is the total cost incurred during the period to acquire segment assets that
are expected to be used for more than one period in that geographic region.
Operating segments
For the year ended 31 December 2024, the Group had three segments, being nickel ore mining in Indonesia, the RKEF
projects in Indonesia and Singapore and the HPAL projects in Indonesia.
Nickel ore
mining
$
RKEF
Projects(3)
$
HPAL
Projects
$
Unallocated
$
Total
$
31 December 2024
External revenues
68,610,586(1)
1,566,448,766
109,393,381
-
1,744,452,733
Reportable segment
profit/(loss) before tax
89,888,305
(181,696,953)
14,061,532
(95,712,649)
(173,459,765)
Adjusted EBITDA(4)
100,602,348
187,235,890
18,685,556
(9,702,536)
296,821,256
Share of gain of equity
accounted investees
-
-
7,235,507
-
7,235,507
Interest income
363,645
2,479,937
57,485
10,301,409
13,202,476
Interest expense
-
-
-
91,748,931
91,748,931
Depreciation and
amortisation(2)
5,519,525
117,777,149
4,681,507
-
127,978,181
Impairment
-
236,582,302
-
-
236,582,302
Losses/(gains) on FX
2,214,605
13,871,895
-
363,541
16,450,041
Withholding tax expense
3,651,897
3,478,306
-
3,593,839
10,724,042
Reportable segment
assets
286,401,924
2,227,293,710
1,325,330,109
57,222,527
3,896,248,270
Reportable segment
liabilities
52,129,072
221,422,802
13,675,632
1,060,791,060
1,348,018,566
76
Nickel Industries Annual Report 2024
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
Nickel ore
mining
$
RKEF
Projects(3)
$
HPAL
Projects
$
Unallocated
$
Total
$
31 December 2023
External revenues
36,812,648(1)
1,810,713,299
32,578,847
-
1,880,104,794
Reportable segment
profit/(loss) before tax(5)
76,093,314
230,076,384
3,490,763
(85,692,603)
223,967,858
Adjusted EBITDA(4)
87,851,525
343,366,213
5,239,447
(29,789,992)
406,667,193
Share of loss of equity
accounted investees
-
-
(2,560,590)
-
(2,560,590)
Interest income
95,514
1,427,669
6,101
11,991,326
13,520,610
Interest expense
-
-
-
69,101,465
69,101,465
Depreciation and
amortisation
4,166,957
105,734,642
1,754,784
-
111,656,383
Losses/(gains) on FX
(96,234)
6,196,007
-
(2,780,461)
3,319,311
Withholding tax expense(5)
7,794,907
1,043,954
-
3,303,925
12,142,786
Reportable segment
assets
182,458,095
2,628,345,372
614,790,862
645,751,453
4,071,345,782
Reportable segment
liabilities
48,499,648
275,247,098
-
840,957,448
1,164,704,194
(1) Revenue number for sales of limonite ore only. Sales of saprolite nickel ore are internal to the Group and so are eliminated on consolidation,
whilst limonite ore sales are to parties external to the Group.
(2) Includes $42,364,726 (2023: $39,278,058) of amortisation on the fair value uplift of property, plant and equipment resulting from the
acquisition of the Angel Nickel, Hengjaya Nickel, Oracle Nickel, and Ranger Nickel RKEF projects.
(3) As disclosed in Note 18, the Group has four separate CGUs (RKEF plants) in the RKEF Projects segment. They are considered as an
aggregate portfolio and therefore are included within the one segment here.
(4) Adjusted EBITDA is defined as profit/(loss) for the period, plus depreciation and amortisation costs, plus impairment, plus foreign exchange
gains/(losses), plus interest income/(expenses), plus withholding tax expense.
(5) Refer to Note 2 for reclassification of prior period expenses.
Annual Report 2024 Nickel Industries 77
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
31 December 2024
$
31 December 2023
$
Reconciliations of reportable segment profit or loss
Profit or loss
Total (loss)/profit for reportable segments
(77,747,116)
309,660,461
Net other corporate expenses
(95,712,649)
(85,692,603)
Consolidated (loss)/profit before tax
(173,459,765)
223,967,858
Reconciliations of reportable assets and liabilities
Assets
Total assets for reportable segments
3,839,025,743
3,425,594,329
Unallocated corporate assets
57,222,527
645,751,453
Consolidated total assets
3,896,248,270
4,071,345,782
Liabilities
Total liabilities for reportable segments
(287,227,506)
(323,746,746)
Unallocated corporate liabilities
(1,060,791,058)
(840,957,448)
Consolidated total liabilities
(1,348,018,564)
(1,164,704,194)
Geography of reportable segment assets
Indonesia
$
Singapore
$
Total
$
31 December 2024
Reportable segment assets
3,815,941,012
23,084,731
3,839,025,743
31 December 2023
Reportable segment assets
3,414,582,900
11,011,429
3,425,594,329
Revenue
All sales during the year were to customers located in either China, Indonesia, Singapore or Switzerland. All NPI sales
by Hengjaya Nickel, Oracle Nickel and Ranger Nickel were in Indonesia, by Angel Nickel were exported to China. The
value of total NPI sales to customers based in China was $481.9 million and to customers based in Indonesia was $973.3
million. Sales of nickel matte to a customer based in Indonesia were $25.2 million and exported to a buyer based in
Switzerland were $94.9M. Limonite ore revenue totaling $68.3 million was derived from sales to customers located in
Indonesia.
78
Nickel Industries Annual Report 2024
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
NOTE 24 - REVENUE
Major customers
All sales of NPI during the year were either exported sales to Shanghai Decent in China ($472.1M), or sales within
Indonesia to PT Indonesia Guang Ching Nickel and Stainless Steel Industry ($6.6M), PT Indonesia Stainless Steel
($451.3M) or PT Qing Feng Ferrochrome ($520.3M), stainless steel producers operating within the IMIP. All exported
sales of nickel matte were to Glencore AG ($86.0M), and sales of matte in Indonesia were to PT Indonesia Guang Ching
Nickel and Stainless Steel Industry ($30.1M).
All sales of saprolite nickel ore during year ended, were to the Company’s subsidiaries PT Hengjaya Nickel Industry, PT
Oracle Nickel Industry and PT Ranger Nickel Industry, under a series of offtake agreements to supply between 80,000
to 100,000 wmt per month to each entity. During the year, limonite ore was delivered to two HPAL projects operating
within the IMIP, the Huayue Nickel Cobalt project and the QMB HPAL Nickel project.
Disaggregation of revenue from contracts with customers
In the following table, revenue from contracts with customers is disaggregated by major production and timing of
revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the Group’s reportable
segments.
Nickel pig iron
Nickel matte
Mixed Hydroxide Precipitate
31 December
2024
$
31 December
2023
$
31 December
2024
$
31 December
2023
$
31 December
2024
$
31 December
2023
$
Major products
1,450,344,380
1,490,483,803
116,104,385
320,229,496
109,393,382
32,578,847
Timing of revenue
recognition
Products transferred
at a point in time
1,450,344,380
1,490,483,803
116,104,385
320,229,496
109,393,382
32,578,847
Revenue from
contracts with
customers
1,450,344,380
1,490,483,803
116,104,385
320,229,496
109,393,382
32,578,847
Saprolite ore*
Limonite ore
Total
31 December
2024
$
31 December
2023
$
31 December
2024
$
31 December
2023
$
31 December
2024
$
31 December
2023
$
Major products
136,974,090
144,332,258
68,610,586
36,812,648
1,744,452,733
1,880,104,794
Timing of revenue
recognition
Products transferred
at a point in time
136,974,090
144,332,258
68,610,586
36,812,648
1,744,452,733
1,880,104,794
Revenue from
contracts with
customers
136,974,090
144,332,258
68,610,586
36,812,648
1,744,452,733
1,880,104,794
*
Sales of saprolite nickel ore are internal to the Group and so are eliminated on consolidation.
The extent to which an entity’s revenue is disaggregated for the purposes of this disclosure depends on the facts and
circumstances of the entity’s contracts with customers.
Annual Report 2024 Nickel Industries 79
For the year ended 31 December 2024
Notes to the Consolidated
Financial Statements
NOTE 25 - AUDITOR REMUNERATION
During the year ended 31 December 2024 KPMG, the Company’s auditor, has performed other services in addition to
their statutory audit duties.
Details of the amounts charged by the auditor of the Group, KPMG, and its related practices for audit and non-audit
services provided during the year and prior period are set out below:
31 December 2024
$
31 December 2023
$
Auditors of the Company
Audit and review of financial reports – KPMG Australia
540,656
388,483
Audit and review of financial reports – KPMG Indonesia
290,995
254,567
Other assurance services – KPMG Australia
54,783*
250,515
Other assurance services – KPMG Indonesia
27,996
13,413
Advisory services – KPMG Australia
117,218
-
Advisory services – KPMG Indonesia
3,211
-
1,034,859
906,978
*
Additionally, KPMG were paid $152,046 for other assurance services undertaken on behalf of PT Danusa Tambang Nusantara, for which the
Company was reimbursed.
NOTE 26 – SUBSEQUENT EVENTS
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction
or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the
operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.
NOTE 27 – COMMITMENTS AND CONTINGENCIES
There are no contingent liabilities existing at 31 December 2024 (31 December 2023: $nil).
Under the terms of Excelsior Nickel Definitive Agreement, the Company has committed to acquire a 55% equity interest
in the Excelsior Nickel Project for $1,265.0M. At 31 December 2024 the Company had acquired a 44% interest for
$1,012.0M.
Under the terms of the Definitive Agreement to increase to an 82.5% interest requires the completion of a feasibility
study that is accepted by the Indonesian mining department, to allow the Contract of Work (CoW) to move into the next
phase of its life cycle, which is “production/operation”. The feasibility study has been submitted for approval. To acquire
the remaining 17.5% interest requires a third party valuation of the economic value of the Siduarsi resource to Valmin
Code 2015 standard (the Valuation); the vendors may elect to take this consideration as 50% cash and 50% shares
based on the 30-day VWAP of Nickel Industries shares on the ASX; and existing aggregate shareholder loans of no more
than US$9 million to be paid out as 50% cash and 50% Nickel Industries shares (calculated on the 30-day VWAP on the
ASX prior to the announcement of the Valuation).
Under the terms of the agreements for the acquisition of 60% of the Sampala project, for the Abadi Nikel Nusantara
(ANN) (previously known as Mandiri Jaya Nickel) and Erabaru Timur Lestari (ETL) IUPs, following the issuance of a
positive due diligence notice, the Company will carry out an agreed initial exploration program (IEP) within 18 months
and for the purpose of determining the purchase consideration payable to the vendor at completion. After the IEP,
Nickel Industries shall pay the Vendor the purchase consideration, calculated as:
•
60% * the JORC Resource * US$2.50 per dmt above 1.70% nickel grade
For the Gita Flora (GF) IUP, the Company must make a final $2 million cash payment upon the transfer of 60% of GF to
Nickel Industries.
80
Nickel Industries Annual Report 2024
Consolidated Entity
Disclosure Statement
For the year ended 31 December 2024
Entity Name
Body corporate,
partnership
or trust
Place
incorporated/
formed
% of share capital
held directly or
indirectly by the
Company in the
body corporate
Australian or
Foreign tax
resident
Nickel Industries Limited
Body corporate
Australia
Australian
PT Hengjaya Mineralindo
Body corporate
Indonesia
80
Indonesian
Hengjaya Holdings Private Limited
Body corporate
Singapore
80
Singaporean
Hengjaya Nickel Private Limited
Body corporate
Singapore
80
Singaporean
PT Hengjaya Nickel Industry
Body corporate
Indonesia
80
Indonesian
Ranger Investment Private Limited
Body corporate
Singapore
80
Singaporean
Ranger Nickel Private Limited
Body corporate
Singapore
80
Singaporean
PT Ranger Nickel Industry
Body corporate
Indonesia
80
Indonesian
Angel Capital Private Limited
Body corporate
Singapore
80
Singaporean
Angel Nickel Private Limited
Body corporate
Singapore
80
Singaporean
PT Angel Nickel Industry
Body corporate
Indonesia
80
Indonesian
Oracle Development Private Limited
Body corporate
Singapore
80
Singaporean
Oracle Nickel Private Limited
Body corporate
Singapore
80
Singaporean
PT Oracle Nickel Industry
Body corporate
Indonesia
80
Indonesian
Tablasufa Pty Ltd
Body corporate
Australia
100
Australian
Iriana Cendrawana Pte Ltd
Body corporate
Singapore
52.4
Singaporean
Pt Iriana Mutiara Mining
Body corporate
Indonesia
51
Indonesian
PT Mutiara Iriana Minerals
Body corporate
Indonesia
52.4
Indonesian
Tanis Resources S.A
Body corporate
British Virgin
Islands
52.4
British Virgin
Islands
Tsing Creation International Holding Limited
Body corporate
Hong Kong
100
Hong Kong
Determination of Tax Residency
Section 295 (3A) of the Corporation Acts 2001 requires that the tax residency of each entity which is included in the
Consolidated Entity Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an Australian
resident, “Australian resident” has the meaning provided in the Income Tax Assessment Act 1997. The determination of
tax residency involves judgment as the determination of tax residency is highly fact dependent and there are currently
several different interpretations that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
•
Australian tax residency - the consolidated entity has applied current legislation and judicial precedent, including
having regard to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5; and
•
Foreign tax residency - the consolidated entity has applied current legislation and where available judicial precedent
in the determination of foreign tax residency. Where necessary, the consolidated entity has used independent
tax advisers in foreign jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax
legislation has been complied with.
Annual Report 2024 Nickel Industries 81
1.
In the opinion of the Directors of Nickel Industries Limited (‘the Company’):
(a) the consolidated financial statements and notes set out on pages 33 to 79 and the Remuneration report on
pages 26 - 30 in the Directors’ report, are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its performance
for the year ended on that date; and
(ii) complying with Australian Accounting Standards, (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001;
(b) the financial report also complies with International Financial Reporting Standards as disclosed in note 2;
(c) the Consolidated entity disclosure statement as at 31 December 2024 set out on page 80 is true and correct;
and
(d) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
chief executive officer and chief financial officer for the financial year ended 31 December 2024.
Signed at Sydney this 24th day of February 2025 in accordance with a resolution of the Board of Directors:
Norman Seckold
Justin Werner
Chairman
Managing Director
Directors’ Declaration
82
Nickel Industries Annual Report 2024
Independent Auditor’s Report
Independent Auditor’s Report
To the shareholders of Nickel Industries Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Nickel Industries Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company gives a true and
fair view, including of the Group’s
financial position as at 31 December 2024
and of its financial performance for the
year then ended, in accordance with the
Corporations Act 2001, in compliance with
Australian Accounting Standards and the
Corporations Regulations 2001.
The Financial Report comprises:
• Consolidated statement of financial position as at 31
December 2024
• Consolidated statement of profit or loss and other
comprehensive income, Consolidated statement of
changes in equity, and Consolidated statement of
cash flows for the year then ended
• Consolidated entity disclosure statement and
accompanying basis of preparation as at 31
December 2024
• Notes, including material accounting policies
• Directors’ Declaration.
The Group consists of the Company and the entities it
controlled at the year end or from time to time during
the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
Annual Report 2024 Nickel Industries 83
Independent Auditor’s Report
Key Audit Matters
The Key Audit Matters we identified are:
• Consolidation of subsidiaries; and
• Impairment of Cash Generating Units.
Key Audit Matters are those matters that, in our
professional judgement, were of most significance in
our audit of the Financial Report of the current period.
These matters were addressed in the context of our
audit of the Financial Report as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
Consolidation of Subsidiaries
Refer to Note 18 Controlled Entities to the Financial Report
The key audit matter
How the matter was addressed in our audit
Nickel Industries Limited consolidates its
investments in subsidiaries as outlined in Note
18 to the financial statements. The Group has
operations in Indonesia, a corporate head office
in Australia and other registered entities
overseas. There are also non-controlling
interests held in certain subsidiaries of the
Group.
Consolidation of subsidiaries is a key audit
matter due to the complexity of the manual
consolidation process, significant number of
components in the Group, non-controlling
interests held by the Group, diverse accounting
systems used by the Group and the
consolidation process susceptibility to error, the
impacts of which are potentially significant.
Our procedures included:
• We assessed the appropriateness of the
Group’s consolidation accounting policies
against the requirements of the accounting
standards and our understanding of the
business and industry practice;
• We obtained an understanding of the
components in the Group, and their ownership
structure, to scope components into our audit,
based on size and level of risk;
• We held discussions with management, and
used our knowledge of the Group’s operations
to assess the consolidation process;
• We tested manual consolidation journals to
underlying documentation given the facts and
circumstances of inter-company transactions
entered into by the Group;
• Obtained the Group’s manual consolidation
spreadsheet and tested:
-
the individual financial information for
entities included in the consolidation for
consistency with the reporting we
received from component auditors;
-
elimination of intercompany balances and
transactions;
-
sources for each journal and relevance for
inclusion in the consolidation;
84
Nickel Industries Annual Report 2024
Independent Auditor’s Report
-
and recognition of non-controlling interests
journals and compared against the
percentage of non-controlling interests
held by the Group.
Impairment of Cash Generating Units
Refer to Note 18 Controlled Entities to the Financial Report
The key audit matter
How the matter was addressed in our audit
A key audit matter for us was the Group’s
testing of the carrying values for its four Cash
Generating Units (CGU) containing indefinite
life intangible assets for impairment, namely
Hengjaya Nickel Project, Ranger Nickel Project,
Angel Nickel Project and Oracle Nickel Project.
This is a key audit matter due to the size of the
CGUs, the complexity of the impairment
models and the nature of the key estimates
and assumptions contained within. The Group
recorded a pre-tax impairment charge of
$236.6m against the goodwill and property,
plant and equipment of the Hengjaya Nickel
and Ranger Nickel CGUs. This further increased
our audit effort in respect of this key audit
matter in the current year.
We focused on the significant forward-looking
assumptions the Group applied in its value-in-
use impairment models, including:
• forecast cash flows – the Group’s
profitability for each CGU has declined
during the financial year as compared
against prior year budgets and/or actual
results. The Group’s margins are derived
from realised nickel prices and costs.
Volatility in forecast nickel prices are
subject to greater uncertainty in the current
economic environment and the impact of
declining margins increase the possibility of
the carrying value of the CGUs being
impaired, plus the risk of inaccurate
forecasts or a significantly wider range of
possible outcomes for us to consider. We
focused on the expected rate of recovery in
margins as a result of forecast price
Working with our valuation specialists, our
procedures included:
• We considered the appropriateness of the
value-in-use method applied by the Group to
perform its impairment test of the carrying
value of the CGUs against the requirements of
the accounting standards;
• We assessed the integrity of the value-in-use
models used, including the accuracy of the
underlying calculation formulas;
• We compared the forecast cash flows for year
one in the value-in-use models to approved
forecasts and sought to understand any
adjustments included in the impairment
models;
• We considered the sensitivity of the models by
varying key assumptions, such as forecast
realised nickel pricing, costs and discount
rates, within a reasonably possible range. We
did this to identify those assumptions at higher
risk of bias or inconsistency in application and
to focus our further procedures;
• We assessed the accuracy of previous Group
forecasts to inform our evaluation of forecasts
incorporated in the models;
• For each of the four CGUs, we:
-
challenged the Group’s significant
forecast cash flow assumptions related to
realised nickel prices and costs, in
comparison to observed historical and
expected future pricing and demand in its
products.
-
assessed these key assumptions for
Annual Report 2024 Nickel Industries 85
Independent Auditor’s Report
improvements and cost savings when
assessing the feasibility of the Group’s
forecast cash flows.
• forecast nickel pricing and cash costs – in
addition to the uncertainties described
above, the Group’s models are sensitive to
reasonable possible changes in these
assumptions, indicating increased risk of
impairment. This drives additional audit
effort specific to their feasibility and
consistency of application to the Group’s
strategy.
• discount rates – these are complicated in
nature and vary according to the conditions
and environment the specific CGU is
subject to from time to time, and the
model’s approach to incorporating risks into
the cash flows or discount rates. The
Group’s modelling is sensitive to changes
in discount rates.
The Group uses complex models to perform
their testing of the carrying values of the CGUs
for impairment. The models are largely
manually developed, use adjusted historical
performance as well as a range of internal and
external sources as inputs to the assumptions.
Complex modelling, using forward-looking
assumptions tend to be prone to greater risk
for potential bias, error and inconsistent
application. These conditions necessitate
additional scrutiny by us, in particular to
address the objectivity of sources used for
assumptions, and their consistent application.
We involved valuation specialists to
supplement our senior audit team members in
assessing this key audit matter.
consistency with the Group’s strategy,
our knowledge of the business, industry,
recent actual cash flows and against
publicly available economic data
representing current and expected future
market conditions.
-
assessed cash flow forecasts based on
our experience regarding the feasibility of
these in the industry/economic
environment in which they operate.
-
applied increased scepticism to forecasts
in the areas where previous forecasts
were not achieved.
• We compared forecast realised nickel prices to
published studies of industry trends and
expectations and considered differences for
the Group’s operations. We used our
knowledge of the Group, its past and current
performance, business and customers, and
industry experience;
• We analysed the Group’s discount rates
against publicly available data of a group of
comparable entities adjusted for risk factors
associated with each CGU;
• We recalculated the impairment charge
recognised during the year and its allocation to
the goodwill and assets of the CGUs in
accordance with accounting standards;
• We assessed the disclosures in the financial
report using our understanding obtained from
our testing and against the requirements of the
accounting standards.
86
Nickel Industries Annual Report 2024
Independent Auditor’s Report
Other Information
Other Information is financial and non-financial information in Nickel Industries Limited’s annual report
which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are
responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we consider whether the Other Information is materially inconsistent with
the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• preparing the Financial Report in accordance with the Corporations Act 2001, including giving
a true and fair view of the financial position and performance of the Group, and in compliance
with Australian Accounting Standards and the Corporations Regulations 2001
• implementing necessary internal control to enable the preparation of a Financial Report in
accordance with the Corporations Act 2001, including giving a true and fair view of the
financial position and performance of the Group, and that is free from material misstatement,
whether due to fraud or error
• assessing the Group and Company’s ability to continue as a going concern and whether the
use of the going concern basis of accounting is appropriate. This includes disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless they either intend to liquidate the Group and Company or to cease operations, or have
no realistic alternative but to do so.
Annual Report 2024 Nickel Industries 87
Independent Auditor’s Report
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
• to obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
• to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/media/bwvjcgre/ar1_2024.pdf This description forms part of our Auditor’s
Report.
Report on the Remuneration Report
Opinion
In our opinion, the Remuneration Report
of Nickel Industries Limited for the year
ended 31 December 2024, complies with
Section 300A of the Corporations Act
2001.
Directors’ responsibilities
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration
Report in accordance with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in
pages 28 to 32 of the Directors’ report for the year
ended 31 December 2024.
Our responsibility is to express an opinion as to whether
the Remuneration Report complies in all material
respects with Section 300A of the Corporations Act
2001, based on our audit conducted in accordance with
Australian Auditing Standards.
KPMG
Adam Twemlow
Partner
Brisbane
24 February 2025
26 to 30
88
Nickel Industries Annual Report 2024
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this report is
as follows. The information is current as at 31 January 2025.
DISTRIBUTION OF EQUITY SECURITIES
ORDINARY SHARES
Range
Number of Holders
Number of Shares
1 to 1,000
2,948
1,933,192
1,001 to 5,000
4,540
12,619,623
5,001 to 10,000
2,172
17,183,462
10,001 to 100,000
4,335
136,958,351
Above 100,001
603
4,121,115,252
14,598
4,289,809,880
The number of shareholders holding less than a marketable parcel is 1,468.
TWENTY LARGEST SHAREHOLDERS
The names of the twenty largest holders of quoted shares are:
Nº
SHAREHOLDER
Number of Shares
Total
%
1
PT Danusa Tambang Nusantara
857,000,000
19.98
2
Decent Investment International Private Limited
672,647,474
15.68
3
HSBC Custody Nominees (Australia) Limited
579,027,241
13.50
4
Citicorp Nominees Pty Limited
444,764,162
10.37
5
J P Morgan Nominees Australia Pty Limited
282,358,718
6.58
6
PT Harum Energy TBK
178,485,571
4.16
7
BNP Paribas Noms Pty Ltd
173,797,555
4.05
8
Shanghai Decent Investment (Group) Co., Ltd
161,696,446
3.77
9
Decent Resource Limited
108,122,223
2.52
10
Shanghai Wanlu Investment Co Ltd
97,258,258
2.27
11
Tatranji Pty Ltd
52,761,313
1.23
12
Altinova Nominees Pty Ltd
49,454,348
1.15
13
HSBC Custody Nominees (Australia) Limited – A/C 2
42,795,668
1.00
14
BNP Paribas Nominees Pty Ltd
38,985,450
0.91
15
Rosignol Pty Ltd
22,163,557
0.52
16
Valence Asia Holding Limited
21,816,979
0.51
17
BNP Paribas Nominees Pty Ltd
18,419,533
0.43
18
National Nominees Limited
15,552,390
0.36
19
Washington H Soul Pattinson & Company Limited
12,200,000
0.28
20
Lonway Pty Limited
10,200,000
0.24
Total in Top 20
3,839,506,886
89.50
Additional ASX Information
Annual Report 2024 Nickel Industries 89
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders and the number of equity securities in which it has an interest, as shown in the Company’s
Register of Substantial Shareholders is:
Shareholder
Number of Shares
Shanghai Decent Investment (Group) Co., Ltd
972,825,079
PT Danusa Nusantara and associates
857,000,000
PT. Karunia Bara Perkasa
366,134,822
L1 Capital Pty Ltd
245,878,808
CLASS OF SHARES AND VOTING RIGHTS
The voting rights attached to ordinary shares, as set out in the Company’s Constitution, are that every member in
person or by proxy, attorney or representative, shall have one vote when a poll is called, otherwise each member present
at a meeting has one vote on a show of hands.
TENEMENT SCHEDULE
Project
Tenement number
Interest
%
Hengjaya Project
540-3/SK.001/DESDM/VI/2011
80%
Siduarsi Project
Contract of Work No. 254.K/30/DJB/2018
51%
Additional ASX Information
90
Nickel Industries Annual Report 2024
DIRECTORS:
Norman Seckold
Justin Werner
Chris Shepherd
James Crombie
Emma Hall
Dasa Sutantio
Muliady Sutio
William Shangjaya
Yuanyuan Xu
Haijun Wang
COMPANY SECRETARY:
Richard Edwards
PRINCIPAL PLACE OF BUSINESS AND REGISTERED OFFICE:
Level 2, 66 Hunter Street
SYDNEY NSW 2000
Phone:
61-2 9300 3311
Fax:
61-2 9221 6333
Email:
info@nickelindustries.com
Website:
www.nickelindustries.com
AUDITOR:
KPMG
Level 11, Heritage Lanes
80 Ann Street
BRISBANE QLD 4000
SHARE REGISTRAR:
Computershare Investor Services Pty Limited
Level 3, 60 Carrington Street
SYDNEY NSW 2000
Phone:
1300 787 272
Overseas Callers:
61-3 9415 4000
Fax:
61-3 9473 2500
Corporate Directory
nickelindustries.com
Samples/000001/000003
*I00000110*
Samples/000001/000004
*I00000109*
Samples/000001/000005
*I00000108*
7
Resolution 3 - Re-election of James Crombie as a Director
Position: Independent, Non-Executive Director
Director since 23 May 2008
In accordance with Article 15.6 of the Company's Constitution and the Corporations Act, Mr James Crombie
retires as a Director by rotation and, being eligible, offers himself for re-election.
Jim Crombie graduated from the Royal School of Mines, London, with a B.Sc. (Hons) in Mining Engineering,
having been awarded an Anglo American Scholarship. Mr. Crombie held various positions with DeBeers
Consolidated Mines and the Anglo American Corporation in South Africa and Angola between 1980 and 1986.
He spent the next thirteen years as a Mining Analyst and Investment Banker with Shepards, Merrill Lynch,
James Capel & Co. and finally with Yorkton Securities. Mr Crombie was the Vice President, Corporate
Development of Hope Bay Mining Corporation Inc. from February 1999 through May 2002 and President and
CEO of Ariane Gold Corp. from August 2002 to November 2003. Mr Crombie was President, CEO and a
director of Palmarejo Silver and Gold Corporation until the merger with Coeur d'Alene Mines Corporation, one
of the world's leading silver companies, in December 2007. He was a director of Sherwood Copper Corporation
until its business combination with Capstone Mining Corp. in November 2008. Currently, Mr Crombie is
President and CEO of Odyssey Resources Corp.
The Board has reviewed Mr Crombie’s performance since his appointment to the Board and considers that his
skills and experience will continue to enhance the Board’s ability to perform its role.
Board Recommendation
The Directors (with Mr Crombie abstaining) recommend that you vote IN FAVOUR of Resolution 3.
The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 3.
Resolution 4 - Re-election of Emma Hall as a Director
Position: Independent, Non-Executive Director
Director since 11 June 2024
In accordance with Article 15.10 of the Company's Constitution and the Corporations Act, Ms Emma Halll, who
was appointed as a Director on 11 June 2024, is required to retire as a Director and, being eligible, offers
herself for re-election.
Emma Hall has held senior executive positions at a number of multi-national companies in the critical minerals
industry. These companies specialised in mining, as well as downstream processing, where Emma led
strategy, marketing and business development functions. Prior to this, Emma’s earlier career was in
investment banking in Sydney and London. Emma has over 10 years’ experience in the global battery metals
industry including wide-ranging commercial and technical engagements with battery manufacturers and OEMs
in USA, Europe, Japan, China and South Korea. This experience includes 5 years as Vice President Corporate
Development at Tianqi Lithium Corporation during which the company significantly grew its presence in
Australia, Chile and North Asia. Emma holds Bachelor of Commerce and Bachelor of Laws (Hons) degrees
from the University of Western Australia and a Masters of Applied Finance from Macquarie University and is
a graduate of the Australian Institute of Company Directors.
The Board has reviewed Ms Hall’s performance since her appointment to the Board and considers that her
skills and experience will continue to enhance the Board’s ability to perform its role.
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SRN/HIN: I9999999999
NIC
MR SAM SAMPLE
FLAT 123
123 SAMPLE STREET
THE SAMPLE HILL
SAMPLE ESTATE
SAMPLEVILLE VIC 3030
ABN 44 127 510 589
XX
For your proxy appointment to be effective it
must be received by 11:00am (AEST) on
Tuesday, 20 May 2025.
All your securities will be voted in accordance with your directions.
YOUR VOTE IS IMPORTANT
Phone:
1300 855 080 (within Australia)
+61 3 9415 4000 (outside Australia)
Online:
www.investorcentre.com/contact
Need assistance?
Proxy Form
Lodge your Proxy Form:
How to Vote on Items of Business
Online:
Lodge your vote online at
www.investorvote.com.au using your
secure access information or use your
mobile device to scan the personalised
QR code.
Corporate Representative
If a representative of a corporate securityholder or proxy is to participate in the
meeting you will need to provide the appropriate “Appointment of Corporate
Representative”. A form may be obtained from Computershare or online at
www.investorcentre.com/au and select "Printable Forms".
PARTICIPATING IN THE MEETING
SIGNING INSTRUCTIONS FOR POSTAL FORMS
For Intermediary Online
subscribers (custodians) go to
www.intermediaryonline.com
By Mail:
Computershare Investor Services Pty Limited
GPO Box 242
Melbourne VIC 3001
Australia
1800 783 447 within Australia or
+61 3 9473 2555 outside Australia
By Fax:
Your secure access information is
APPOINTMENT OF PROXY
PLEASE NOTE: For security reasons it
is important that you keep your SRN/HIN
confidential.
Control Number: 999999
PIN: 99999
Individual: Where the holding is in one name, the securityholder must sign.
Joint Holding: Where the holding is in more than one name, all of the securityholders should
sign.
Power of Attorney: If you have not already lodged the Power of Attorney with the registry,
please attach a certified photocopy of the Power of Attorney to this form when you return it.
Companies: Where the company has a Sole Director who is also the Sole Company
Secretary, this form must be signed by that person. If the company (pursuant to section 204A
of the Corporations Act 2001) does not have a Company Secretary, a Sole Director can also
sign alone. Otherwise this form must be signed by a Director jointly with either another
Director or a Company Secretary. Please sign in the appropriate place to indicate the office
held. Delete titles as applicable.
Voting 100% of your holding: Direct your proxy how to vote by marking one of the boxes
opposite each item of business. If you do not mark a box your proxy may vote or abstain as
they choose (to the extent permitted by law). If you mark more than one box on an item your
vote will be invalid on that item.
Voting a portion of your holding: Indicate a portion of your voting rights by inserting the
percentage or number of securities you wish to vote in the For, Against or Abstain box or
boxes. The sum of the votes cast must not exceed your voting entitlement or 100%.
Appointing a second proxy: You are entitled to appoint up to two proxies to attend the
meeting and vote on a poll. If you appoint two proxies you must specify the percentage of
votes or number of securities for each proxy, otherwise each proxy may exercise half of the
votes. When appointing a second proxy write both names and the percentage of votes or
number of securities for each in Step 1 overleaf.
A proxy need not be a securityholder of the Company.
You may elect to receive meeting-related
documents, or request a particular one, in
electronic or physical form and may elect
not to receive annual reports. To do so,
contact Computershare.
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I 9999999999
or failing the individual or body corporate named, or if no individual or body corporate is named, the Chairman of the Meeting, as my/our proxy to
act generally at the meeting on my/our behalf and to vote in accordance with the following directions (or if no directions have been given, and to
the extent permitted by law, as the proxy sees fit) at the Annual General Meeting of Nickel Industries Limited to be held at Level 5, 1 Margaret
Street, Sydney, NSW 2000 on Thursday, 22 May 2025 at 11:00am (AEST) and at any adjournment or postponement of that meeting.
Chairman authorised to exercise undirected proxies on remuneration related resolutions: Where I/we have appointed the Chairman of the
Meeting as my/our proxy (or the Chairman becomes my/our proxy by default), I/we expressly authorise the Chairman to exercise my/our proxy
on Resolutions 1, 5, 6, 7, 8 and 9 (except where I/we have indicated a different voting intention in step 2) even though Resolutions 1, 5, 6, 7, 8
and 9 are connected directly or indirectly with the remuneration of a member of key management personnel, which includes the Chairman.
Important Note: If the Chairman of the Meeting is (or becomes) your proxy you can direct the Chairman to vote for or against or abstain from
voting on Resolutions 1, 5, 6, 7, 8 and 9 by marking the appropriate box in step 2.
The Chairman of the Meeting intends to vote undirected proxies in favour of each item of business. In exceptional circumstances, the Chairman
of the Meeting may change his/her voting intention on any resolution, in which case an ASX announcement will be made.
I ND
N I C
3 1 6 9 8 7 A
MR SAM SAMPLE
FLAT 123
123 SAMPLE STREET
THE SAMPLE HILL
SAMPLE ESTATE
SAMPLEVILLE VIC 3030
XX
Appoint a Proxy to Vote on Your Behalf
Change of address. If incorrect,
mark this box and make the
correction in the space to the left.
Securityholders sponsored by a
broker (reference number
commences with ‘X’) should advise
your broker of any changes.
Proxy Form
Please mark
to indicate your directions
I/We being a member/s of Nickel Industries Limited hereby appoint
the Chairman
of the Meeting
OR
PLEASE NOTE: Leave this box blank if
you have selected the Chairman of the
Meeting. Do not insert your own name(s).
Step 1
Step 2
Items of Business
PLEASE NOTE: If you mark the Abstain box for an item, you are directing your proxy not to vote on your
behalf on a show of hands or a poll and your votes will not be counted in computing the required majority.
This section must be completed.
Individual or Securityholder 1
Securityholder 2
Securityholder 3
Sole Director & Sole Company Secretary
Director
Director/Company Secretary
Update your communication details
By providing your email address, you consent to receive future Notice
of Meeting & Proxy communications electronically
Mobile Number
Email Address
(Optional)
Signature of Securityholder(s)
Step 3
For
Against Abstain
Resolution 1
Approval of
Remuneration
Report
Resolution 2
Re-election of
Norman Seckold as
a Director
Resolution 3
Re-election of
James Crombie as
a Director
Resolution 4
Re-election of
Emma Hall as a
Director
Resolution 5
Approval to grant
Performance Rights
to a Director,
Norman Seckold
Resolution 6
Approval to grant
Performance Rights
to the Managing
Director, Justin
Werner
For
Against Abstain
Resolution 7
Approval to grant
Performance Rights
to a Director, Chris
Shepherd
Resolution 8
Approval to grant
Share Rights to a
Director, Chris
Shepherd
Resolution 9
Approval to
increase Non-
Executive Directors
fees
Date
/ /