Timely boost for Nickel Industries as it expects its quarterly earnings to rise

Amid uncertainty regarding the cost of royalties potentially rising in Indonesia, Sydney-based Nickel Industries expects to up its earnings for the March quarter.

The Justin Werner-led producer told the market it anticipated its earnings before interest, tax, depreciation and amortisation range to be between $US85-90million for the period, being a 20 per cent rise from the prior corresponding period.

But the producer has been hampered by significant rainfall and flooding, recording 707 millimetres of rain in the past month in the Indonesia Morowali Industrial Park region – where Nickel Industries’ RKEF-based operations are located.

As a result of the heavy rainfall, Nickel Industries said it temporarily halted operations at its Oracle nickel rotary kiln electric furnace for three days. It said no significant damage was recorded, and there was no requirement for capital expenditure on repairs. 

The company said the industrial park's team was working to upgrade the nearby stormwater system to ensure it remained an isolated event, 

As of 7.59am AWST, Nickel Industries shares were trading up 2 per cent to 64 cents.