This report is an updated version of the report published on 2 January 2026 at 1:00 PM AEDT.

Nickel Industries Limited (ASX: NIC) 

Nickel Industries Limited is a nickel pig iron (NPI) producer, which is a key input in the production of stainless steel. It is engaged in the production of nickel matte. The Company owns a portfolio of mining and low-cost downstream nickel processing assets in Indonesia. 

Recommendation Rationale – SELL at AUD 0.900

• Technical Standpoint: NIC’s share price has surpassed the R2 recommended on 3 October 2025. The 14-day RSI is now around 78.36, trading in overbought territory. This upward move raises the risk of short-term consolidation or downside retracement.
• Rising unit operating costs at mining operations: Unit operating costs increased from USD 12.5/wmt in Q2 2025 to USD 14.6/wmt in Q3 2025, reflecting higher cost pressures across mining activities during the quarter.
• Lower realised nickel prices at RKEF operations: Average sale price decreased from USD 11,449/t Ni in Q2 2025 to USD 11,078/t Ni in Q3 2025, highlighting softer pricing conditions.
• Overvalued Multiples: On a forward 12-month – key valuation multiples (EV/EBITDA, and Price/Earnings) are higher than average of the Basic Materials’ sector. 

NIC Daily Chart

Daily Technical Chart, Data Source: REFINITV

Valuation Methodology: Price/Cash Flow Approach (FY Dec'26E) (Illustrative)

The stock might trade at a slight premium to peers, supported by HPAL integration progress across utilities and reagents, production exceeding nameplate capacity, and a 21% YoY increase in HPAL attributable EBITDA in Q3 FY25.              

For conducting the valuation, peers Catalyst Metals Ltd (ASX: CYL), Champion Iron Ltd (ASX: CIA), and Rio Tinto Ltd (ASX: RIO) have been considered.

Given the stock has crossed to its R2 level, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 0.900, as of 2 January 2026, at 12:07 PM AEDT. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 2 January 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement.
Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices