Nickel Industries expects to fund purchase from cash reserves

Nickel Industries (ASX:NIC) has confirmed that it will fund the acquisition of its final 2% equity interest in the Excelsior Nickel Cobalt HPAL (ENC) Project from Decent Resource using its existing cash reserves. The company has completed the transaction, paying US$46 million for the stake, bringing its total ownership in the ENC Project to 46% and making it the largest shareholder.

The ENC Project is currently in the commissioning phase and is expected to produce multiple nickel and cobalt products, including mixed hydroxide precipitate (MHP), nickel and cobalt sulfate, and nickel cathode. The project is positioned to become a low-cost, sustainable producer of high-quality nickel, with production anticipated to ramp up in the coming quarters.

The acquisition underscores Nickel Industries’ strategy to consolidate its position in key nickel assets, with the ENC Project representing a significant step toward becoming a major supplier of nickel for global electrification and industrial applications.