Latest news with #RKAB
Reuters
02-07-2025
- Business
- Reuters
Indonesia plans to cut mining quota period back to one year, minister says
JAKARTA, July 2 (Reuters) - Indonesia plans to cut the duration of mining quotas back to one year from the current three years to improve governance in the sector and better control coal and ore supplies, mining minister Bahlil Lahadalia said on Wednesday. Resource-rich Indonesia extended the validity of mining production quotas, locally known as RKAB, to three years in 2023 to ease red tape. Miners in Indonesia are required to seek RKAB approval to determine how much ore they may dig out over a period of time. "Because we allowed three-year RKAB, we could not control the balance between coal production and global demand ... Same thing happened to nickel, as well as bauxite," Bahlil told members of parliament. The switch back to one year was proposed to the minister by lawmakers overseeing the mining sector. The move is expected to help underpin prices of coal and ores and boost government revenues, Bahlil added.
Yahoo
25-02-2025
- Business
- Yahoo
Nickel Industries Ltd (NICMF) (Q4 2024) Earnings Call Highlights: Navigating Challenges with ...
Adjusted EBITDA: USD296.8 million, adjusted for HNI and RNI impairment and FX losses. Gross Profit: USD186.7 million. Net Loss After Tax: USD189.8 million. Final Dividend: AUD0.015 per share, total 2024 dividend AUD0.04 per share. Net Debt: USD827.5 million. Nickel Production: 135,602 tonnes in 2024. Hengjaya Mine EBITDA: Over USD100 million. HNC Adjusted EBITDA: USD466.3 million on a 100% basis. RKEF Margins: Declined from USD2,676 in 2023 to USD1,458 in 2024. ENC Ownership: Increased to 44%, with plans to reach 55%. Sampala Project Acquisition: 60% ownership acquired. Bank Funding Loans: USD250 million established and syndicated. Warning! GuruFocus has detected 7 Warning Signs with NICMF. Release Date: February 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nickel Industries Ltd (NICMF) reported a strong EBITDA of USD 296.8 million despite challenging market conditions. The company declared a final dividend of AUD 0.015 per share, resulting in a full-year dividend of AUD 0.04 per share, reflecting a greater than 5% dividend yield. Record production of 135,602 tonnes of nickel was achieved in 2024, with ENC construction progressing ahead of schedule. Significant corporate developments include increased ownership in ENC to 44% and the acquisition of 60% of the world-class Sampala project. The company achieved notable ESG milestones, including a low carbon intensity of 6.9 tonnes of carbon per tonne of nickel and several awards for climate reporting and transparency. Nickel Industries Ltd (NICMF) faced a net loss after tax of USD 189.8 million due to impairments and high ore costs. The company had to account for a USD 205 million impairment of older RKEF assets, impacting financial results. Global nickel market conditions were challenging, with significant declines in LME and NPI prices. The company experienced margin compression, with RKEF margins declining from 2023 to 2024. There are concerns about the impact of Indonesia's mandate for natural resource companies to retain 100% of FX revenues in Indonesia for 12 months, which could affect working capital. Q: Can you provide an update on the RKAB quota increase and the timeline for its approval? A: Justin Werner, Managing Director, explained that the feasibility study for the RKAB quota increase has been submitted and is nearing final approval. Once approved, the Environmental Impact Statement (AMDAL) will be submitted, expected to take three to four months for approval. The goal is to complete the RKAB increase before October 2025, aligning with the ENC HPAL MHP plant commissioning. Q: How will Indonesia's mandate for natural resource companies to retain 100% of FX revenues impact Nickel Industries? A: Christopher Shepherd, CFO, noted that the mandate's impact is still being analyzed, particularly which exports are covered. If it applies to all exports, it could affect NPI exports and future ENC exports, impacting working capital. However, companies converting USD to IDR may not need to hold capital for 12 months. Q: Why did you decide to pay a dividend for the second half of CY24, given your dividend policy? A: Christopher Shepherd explained that despite challenging conditions in 2024, the decision to pay a dividend was made to balance shareholder returns with maintaining a strong balance sheet. The dividend policy guides 30% to 60% of free cash flow, but extraordinary events in 2024 influenced the decision to pay above the minimum level. Q: Can you elaborate on the impairment charge and its impact on the business? A: Justin Werner clarified that the impairment charge is an accounting adjustment with no cash impact. It reflects lower profitability from older RKEF operations compared to newer ones. The impairment is based on market analyst forecasts and accounting standards, with no immediate effect on business operations. Q: What is driving the outperformance of HNC in 2024, and how does it relate to ENC's future performance? A: Justin Werner attributed HNC's outperformance to Tsingshan's operational efficiency and higher-grade ore usage. ENC is expected to benefit similarly, with initial operations using higher-grade ore to maximize margins. Tsingshan's conservative capacity estimates often lead to exceeding nameplate capacity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
