Earnings release
Page 1
S March 2025 Quarterly Activities.docx 1 1Adjusted EBITDA is defined as profit/(loss) before tax for the period plus the following adjustments: depreciation and amortisation costs, impairment, foreign exchange gains/(losses), net finance cost, withholding tax expense and the proportionate share of these adjustments in equity accounted associates. Adjusted EBITDA reconciliation included on page 8. Mining operations Key reporting metrics Units Q2 2026 Q3 2026 Variance Ore production wmt 4,131,917 6,143,444 49% Ore sales wmt 2,883,068 4,485,170 56% Unit operating cost US$/wmt 21.9 18.5 (15%) Adjusted EBITDA US$m 45.7 76.9 68% Adjusted EBITDA/wmt US$/wmt 15.9 17.1 8% HPAL operations Key reporting metrics Units Q2 2026 Q3 2026 Variance Attributable sales Ni tonnes 1,782 1,900 7% Adjusted EBITDA US$m 14.4 8.4 (42%) Adjusted EBITDA/t US$/t Ni 8,090 4,416 (45%) RKEF operations Key reporting metrics Units Q2 2026 Q3 2026 Variance Production Ni tonnes 27,864 27,822 (0%) Sales Ni tonnes 27,961 26,837 (4%) Cash costs US$/t Ni 12,595 13,054 4% Adjusted EBITDA US$m 60.3 40.7 (33%) Adjusted EBITDA/t US$/t Ni 2,157 1,516 (30%) Highlights • Record ore sales and record Adjusted EBITDA from the Hengjaya Mine • ENC HPAL integrated commissioning well advanced; first MHP produced in July, first nickel cathode in August and cobalt cathode in September • ENC received exemption from restriction on the export of MHP • Ranked in the top 20% of Asia Pacific metals and mining peers in the S&P Global Corporate Sustainability Assessment • Post Quarter end, ENC raised US$245 million of debt financing QUARTERLY ACTIVITIES REPORT For the quarter ended 30 September 2026 US$125.9m Adjusted EBITDA from Operations ASX ticker: NIC ASX release: 22 October 2026 Shares on issue: 4.34B Market capitalisation: A$2.93B (@ A$0.675) Board of Directors Executive Chairman Norman Seckold Managing Director Justin Werner Executive Director and CFO Chris Shepherd Non-Executive Directors James Crombie Emma Hall William Shangjaya Muliady Sutio Haijun Wang Yuanyuan Xu Substantial shareholders (as per last substantial holder notices) Shanghai Decent 22.7% PT DTN 20.0% L1 Capital 10.4% Further enquiries Andrew Coleman acoleman@nickelindustries.com + 62 811 1938 331 info@nickelindustries.com +61 2 9300 3311 ACN 127 510 589
Page 2
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 2 The Directors are pleased to present the September 2026 Quarterly Activities Report for Nickel Industries Limited ( Nickel Industries or the Company) and its controlled entities (the Group). For the quarter under review, the Company held an 80% interest in the Hengjaya Nickel ( HNI), Ranger Nickel ( RNI), Angel Nickel (ANI) and Oracle Nickel (ONI) rotary kiln electric furnace (RKEF) projects, an 80% interest in the Hengjaya Mine , a 51% interest in the Siduarsi nickel ore resource project (Siduarsi), a 10% interest in the Huayue Nickel Cobalt HPAL project (HNC) and a 46% interest in the Excelsior Nickel Cobalt HPAL project (ENC), which is in the final stages of commissioning . The Company has also agreed to acquire a 36% interest in the PT Chengsheng New Energy HPAL project ( CNE) and a 17.5% interest in the PT Teluk Metal Industry HPAL project ( TMI). Additionally, the Company has entered into binding agreements to acquire a 60% interest (42% following the CNE share swap) in the Sampala nickel ore resource project (Sampala). Commenting on the September 2026 quarter’s activities, Managing Director Justin Werner said: “The September quarter delivered another strong, consistent quarter of EBITDA with Adjusted EBITDA up 4% to US$125. 9m and Attributable EBITDA of US$102.4m . Once again, our Hengjaya Mine delivered record quarterly ore sales of 4.49 million wmt, up 56%, and record Adjusted EBITDA of US$76.9m, up 6 8% – its second consecutive quarterly record. The result was driven by a 104% increase in limonite sales and a 15% reduction in unit operating costs to US$18.5/wmt, as a growing share of limonite is now hauled just 6km to the ENC Feed Preparation Plant rather than 24km to third -party customers in the IMIP , clearly demonstrating the margin benefits of integration. ENC performed well during the quarter , quickly ramping up to 50% of name plate capacity, with all three autoclaves being independently tested at maximum capacity, until output was reduced due to limited wate r availability as a result of unusually severe El Niño conditions, which have seen the Hengjaya Mine receive only 7mm of rain since the start of August until 21 October, compared to the average over the last 10 years (for August to October) of 474mm . ENC produced 4,840t Ni and 494t Co in MHP at a cash cost of US$13,943/t Ni , below HNC’s cash cost, which is impressive given ENC is not fully ramped up as yet. Sulfur prices, a key input cost for ENC, have also recently decreased to approximately US$800/t. The refinery produced 818t Ni in cathode at a conversion cash cost of US$3,888/t Ni. This is expected to decrease as capacity increases, with a targeted conversion cost of US$2,500/t at nameplate. During the quarter, ENC received an exemption from the regulation introduced earlier this year restricting the export of MHP. Subsequent to the end of the quarter , an onsite IUI inspection was conducted with no major findings, and the Company expects to receive the IUI in Q4 2026, which will allow for first sales of ENC product. All of the Company’s integrated operations continue to perform strongly with the only temporary headwind the lack of rainfall which is beyond our control. This has resulted in us slightly paring back RKEF production to 75% of capacity and full ramp-up at ENC being delayed until the wet season commences, which is usually in December. Once normal rainfall returns, the Company is very well positioned to further grow its EBITDA profile as it starts to recognise additional cashflow contribution from its ENC operations.”
Page 3
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 3 Safety The Company-wide 12-month lost time injury frequency rate (LTIFR) as at the end of September 2026 was 0.06, with one lost time injur y (LTI) recorded during the quarter, against 4.3 million safe man hours registered. For the twelve months to 3 0 September 2026, there were 17.8 million safe man hours registered, with one LTI occurring. The Company-wide 12-month rolling total recordable injury frequency rate (TRIFR) as at the end of September 2026 was 0.67. Sustainability During the quarter, Nickel Industries continued to strengthen its environmental, social an d governance ( ESG) performance across sustainability reporting, environmental management and community development. The Company ’s ESG performance was also externally benchmarked through the S&P Global Corporate Sustainability Assessment, in which Nickel Industries ranked in the top 20% of Asia Pacific metals and m ining peers and achieved a score of 100 for transparency and r eporting, alongside strong relative performance in water management, biodiversity, climate strategy, occupational health and safety, business ethics and community relations. Environmental stewardship continued through the Sustainable Mangrove Community Involvement and Development Program in One Ete and Pulau Bapa, with the Company marking World Mangrove Day in July through a joint planting activity targeting 1,000 mangrove seedlings, involving local communities, government representatives and forest management authorities. Nickel Industries’ community development initiatives received further recognition during the quarter. Hengjaya Mine r eceived a gold a ward at the Innovation Technology for Social and Environmental Awards (IntechSEA) 2026 in the Education and Inclusive Economy category, recognising its waste management and coastal conservation education programs delivered in collaboration with communities and village governments in Morowali. Hengjaya Mine was also recognised by the Ministry of Energy and Mineral Resources ( ESDM) for its contribution to humanitarian response effor ts following the disaster in Nusa Tenggara Timur and, in partn ership with the Asia Pacific Alliance for Disaster Management Indonesia, conducted a disaster preparedness simulation in One Ete village focused on evacuation route mapping and tsunami mitigation awareness. The Company also expanded its university scholarship program, with its partnership with Hasanuddin University now in its third year and expected to reach 30 recipients from Morowali in 2026, and a new NIC Scholarship Program with UPN Veteran Yogyakarta selecting five students from Sulawesi to pursue stud ies in fields relevant to the Company’s operations, including geophysical, mining, metallurgical and geological engineering. Subsequent to the end of the quarter, Hengjaya Mine hosted participants of Duta Minerba Goes to Site 2026, a three-day field program giving young Indonesians direct exposure to safe and responsible mining practices, including environmental management. Together, these achievements reflect Nickel Industries ’ continued commitment to leading responsibly while creating sustainable value fo r its people, communities, environment and stakeholders. COO Tony Green at Hengjaya Mine mangrove conservation area
Page 4
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 4 Mining operations Hengjaya Mine (80% interest held by Nickel Industries) Production Units Q2 2026 Q3 2026 Variance Saprolite production wmt 1,736,274 1,976,658 14% Limonite production wmt 2,395,643 4,166,786 74% Total production wmt 4,131,917 6,143,444 49% Overburden BCM2 860,930 1,433,933 67% Strip ratio BCM/wmt 0.21 0.23 12% Sales Units Q2 2026 Q3 2026 Variance Saprolite sales3 wmt 1,507,689 1,682,693 12% Limonite sales wmt 1,375,380 2,802,477 104% Total ore sales wmt 2,883,068 4,485,170 56% Saprolite grade % 1.48 1.50 2% Limonite grade % 1.13 1.09 (3%) Saprolite sale price US$/wmt 51.6 58.1 13% Limonite sale price US$/wmt 22.7 22.2 (2%) Average sale price US$/wmt 37.8 35.7 (6%) Unit operating costs4 US$/wmt 21.9 18.5 (15%) Adjusted EBITDA US$m 45.7 76.9 68% Adjusted EBITDA/wmt US$/wmt 15.9 17.1 8% EBITDA margin % 42.0 46.7 5% During the quarter, nickel ore production increased 49% to 6,143,444 wmt with a full quarter of operation. Saprolite sale prices increased 13% to US$58.1/wmt, while the average realised sale price decreased 6% to US$35.7/wmt, primarily as a result of a higher proportion of sales being of limonite ore, following a 104% increase in limonite ore sold during the quarter. Unit operating costs decreased 15% to US$18.5/wmt, reflecting lower transport costs from hauling limonite ore only 6km to the ENC Feed Preparation Plant rather than 24km to third-party customers in the IMIP. Adjusted EBITDA increased 68% to US$76.9m for a record result for the second quarter in a row, and Adjusted EBITDA/wmt increased 8% to US$17.1/wmt. During the quarter, the Company submitted an application to increase the 2026 RKAB sales quota to 19m wmt. Hengjaya Mine revegetation and reclamation area 2 BCM represents ‘bank cubic metres’. 3 Sales of saprolite ore by Hengjaya Mine to HNI, RNI and ONI are intra-group transactions and are eliminated on consolidation. Profit from saprolite ore sales is recognised on a consolidated level as a reduction in the cost of operations, once the saprolite ore has been consumed. 4 Unit operating costs include mining, transport, royalty and administration costs.
Page 5
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 5 Sampala Project (Nickel Industries with a right to acquire a 60% interest; 42% post-CNE swap) The Sampala Pr oject continued to advance during the quarter. The Feasibility Study for the ANN IUP is awaiting evaluation from the Indonesian Government, while the ETL Feasibility Study remains under regulatory review. Key environmental, forestry and mining approvals continued to progress through the relevant authorities, supporting the next phase of the Sampala Project’s development. Construction of three bridges under the community development program has been completed . While primarily intended to improve community access, the bridges will also support logistics and the mobilisation of heavy equipment for the Sampala Project. Construction of the first 8km section of the 24km Sampala haul road, linking the ETL and ANN concessions, has been completed together with a 60-metre bridge, with construction of the remaining 16km to follow. Of this, construction of 2.8km is about to commence, with the balance to commence once the necessary approvals are received . During the quarter, drilling crews completed 274 drill holes for a total of 6,922 metres. Drilling focused on achieving 50-metre spacing across the ANN and Gita Flora areas to support detailed mine planning. In parallel, geotechnical drilling continued in support of engineering design and permitting requirements. Sampala Mine construction activities Siduarsi Project (51% interest held by Nickel Industries, with a right to acquire a 100% interest) The submitted Feasibility Study remains under review and the Company continues active en gagement with the relevant authorities of the Indonesian Government . The Siduarsi team continued improvement and maintenance works on the primary haul road, supporting year-round access for personnel, heavy equipment and logistics ahead of future exploration and potential development activities.
Page 6
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 6 HPAL operations HNC & ENC (10% and 46% indirect interests held by Nickel Industries); TMI & CNE (17.5% and 36% to be acquired) During the quarter, HNC sold 19,00 4 tonnes of nickel in mixed hydroxide precipitate (MHP). A ttributable HNC Adjusted EBITDA (10%) was US$7.8m, with a further US$0.6m of Adjusted EBITDA generated by the HPAL trading division on MHP sales to end customers, taking total Adjusted EBITDA to US$ 8.4m. This resulted in Adjusted EBITDA of US$ 4,416/t Ni (including the trading division), 45% lower than the June quarter, driven by lower sales prices and increased operating costs. During the quarter, ENC continued commissioning and ramp-up, reaching 50% of nameplate capacity within weeks before being constrained by limited water availability. ENC produced 4,840t Ni and 494t Co in MHP at a cash cost of US$13,943/t Ni and 818t Ni in cathode at a conversion cash cost of US$3,888/t Ni. Whilst awaiting receipt of its industrial business licence ( Izin Usaha Industri or IUI), ENC made no sales during the quarter; however, the average price of LME nickel was approximately US$16,500/t Ni and cobalt was approximately US$50,000/t Co. During the quarter, ENC also received an exemption from the regulation introduced earlier this year restricting the export of MHP. The onsite IUI inspection was conducted subsequent to the end of the quarter with no major findings, and the Company expects to receive the IUI in Q4 2026. Commencing in July, ore slurry began delivery via pipeline from Hengjaya to the HPAL facility at ENC, where ore and acid from the integrated acid plant were fed to the first of three autoclaves. First MHP product was produced in July and delivered to the integrated refinery. Since ramp -up commenced, oper ating capacity has been limited due to the unusually severe El Niño- driven dry season in Central Sulawesi; however, all three autoclaves have been tested independently at maximum capacity. Smelter product quality has been market -competitive from the outset, and moisture and impurity levels have since improved materially with no reduction in nickel or cobalt content. ENC MHP carries more cobalt than existing products and, with market- leading sustainability and traceability, can now also differentiate on sup erior quality. In August, the refinery began consistently producing Class 1 nickel cathode from ENC’s own MHP, meeting NR9990 quality under ISO 6283:201 7. Data collection is ongoing for brand registration (which will be ‘PT Fajar ’) on the London Metal Exchange, which will support competitive pricing, liquidity and lower financing costs within the superalloys customer base. With a robotic stripping and packaging lin e recently commissioned, the consistently exceptional cathode product has few peers in the industry. Subsequent to the end of the quarter, PT Fajar Metal Industry ( FMI) signed a US$245m non -recourse project finance facility for ENC, led by OCBC (ASX announcement - 21 October 2026). It comprises a US$220m seven-year amortising term loan at SOFR + 2.00% and a US$25m working capital facility, with an accordion of up to US$800m. The facility is not consolidated into Group debt, and Nickel Industries’ 46% share of any term loan distributions is available for general corporate purposes. Nearby in the HPAL complex, the TMI and CNE autoclaves (expected to be in operation in 2027 ) are already in place and the acid plant, neutralisation circuits and crystalliser installations are well advanced. In addition, the Company has a US$169 million acquisition payment for its 17.5% interest in the TMI HPAL (refer ASX announcement - 24 June 2026 ) and has executed a US$169 million unsecured loan facility should this be required. A video filmed in September 2026 showing an overview of the ENC Project can be seen by clicking here. ENC, TMI and CNE HPAL Smelter complex and Fajar branded cathode
Page 7
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 7 RKEF operations (80% indirect interest held by Nickel Industries) Production Units Q2 2026 Q3 2026 Variance NPI production tonnes 245,601 239,959 (2%) Nickel grade % 11.3 11.6 2% Total nickel production tonnes 27,864 27,822 (0%) Cash costs US$/t Ni 12,595 13,054 4% Sales Units Q2 2026 Q3 2026 Variance Sale price US$/t Ni 14,522 14,408 (1%) Sales tonnes 27,961 26,837 (4%) Revenue US$m 407.8 386.2 (5%) Adjusted EBITDA US$m 60.3 40.7 (33%) Adjusted EBITDA/t US$/t Ni 2,157 1,516 (30%) RKEF nickel pig iron ( NPI) production of 239,959 tonnes was down 2% from the June quarter, whilst production in nickel tonnes of 27,822 tonnes was in line with the 27,864 tonnes produced in the June quarter. Maintenance work switched from ANI to HNI, with HNI commencing a planned major overhaul of one of its RKEF line s. This maintenance is expected to take four months, with HNI operating at approximately 50% capacity during this period. Following completion, the overhaul is expected to increase HNI production by approximately 17%. Combined operating cash costs of US$13,054/t Ni were 4% higher quarter- on-quarter, driven primarily by the Indonesian Government’s changes to the nickel ore Mineral Benchmark Price ( HPM), partially offset by lower electricity costs as the captive power plants returned to full operation for the entire quarter . Realised NPI contract pricing of US$14,408/t was down 1% from the June quarter. Revenue for the quarter fell 5%, primarily driven by a 4% drop in nickel metal tonnes sold. As advised in the Company’s Operating Update dated 15 September 2026, Central Sulawesi has been experiencing extremely dry conditions, which have been impacting water supply in the IMIP. The Hengjaya Mine has received 7mm of rain since the start of August until 21 st October, compared to the average over the last 10 years (for August to October) of 474mm. With the extremely unusual dry conditions continuing, water supply issues are now impact ing RKEF operations at the IMIP as well, whilst operations at ANI, which is located on Halmahera Island, are unaffected and operating normally (that is, well above stated nameplate capacity) . The Company’s RKEF operations have reduced production to approximately 75% of nameplate capacity in October, as follows: HNI and RNI, 44%; ONI, 48% and ANI, 128%. Further RKEF detail is contained in Appendix A. Maintenance work in progress at HNI
Page 8
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 8 Finance5 Key financial metrics Balance sheet Units Cash and cash equivalents Trade receivables Inventories Trade payables RKEF US$m 57.3 191.5 195.5 (82.1) HPAL trading division US$m 4.0 0.9 29.2 (12.7) Mining US$m 45.9 48.36 140.4 (47.4) Head office US$m 38.7 - - (1.0) Total US$m 145.9 240.7 365.1 (143.2) During the quarter , Oracle made a shareholder loan repayment of US$50m to Nickel Industries and Shanghai Decent (and its associates), with Nickel Industries receiving US$40m and Shanghai Decent receiving US$10m. The Company also received a US$15m refund of the Oracle matte converter option fee fro m Shanghai Decent. Additionally, following the declaration of dividends by the Hengjaya and Ranger RKEF operating entities, these dividends were distributed to Nickel Industries and Shanghai Decent and its associates, in proportion to their ownership interests as follows: ▪ from Hengjaya Nickel: Nickel Industries received US$7.2m, Shanghai Decent received US$1.8m; and ▪ from Ranger Nickel: Nickel Industries received US$14.4m, Shanghai Decent received US$3.6m. Nickel Industries also received US$2.0m from the HPAL trading division during the quarter. The HPAL trading division received US$13.0m from Huayue Nickel Cobalt in the form of shareholder loan repayments and interest payments. Guidance7 Units YTD Sep26 Actual FY26 Outlook Sampala development capex US$m 37.5 48-53 Maintenance capex US$m 13.5 18-20 Total capex8 US$m 51.0 66-73 Mine consolidated sales M wmt 10.4 14.39 RKEF consolidated sales Ni kt 85.0 100-110 HPAL attributable sales Ni kt 5.8 10-11 EBITDA reconciliation Units Q2 2026 Q3 2026 Variance RKEF Adjusted EBITDA US$m 60.3 40.7 (33%) HPAL Adjusted EBITDA US$m 14.4 8.4 (42%) Mining Adjusted EBITDA US$m 45.7 76.9 68% Adjusted EBITDA US$m 120.5 125.9 4% Non-controlling interest US$m (21.2) (23.5) 11% Attributable EBITDA US$m 99.3 102.4 3% 5 Unaudited numbers from monthly operating entity financial reporting. The table excludes RKEF VAT receivables of US$ 171m and prepayments of US$43m, and trading division prepayments of US$29m. 6 Trade receivables and payables exclude saprolite ore receivables and payables which are eliminated on consolidation. 7 Capex and sales guidance for FY26 are forward-looking statements based on the Company’s current expectations, estimates and assumptions, including: one RKEF line overhaul in 2026; and ENC receipt of IUI in 2026. These statements are subject to known and unknown risks and uncertainties, many of which are beyond the Company’s control, and actual results may differ materially. 8 In addition, the Company has a US$169 million acquisition payment for its 17.5% interest in the TMI HPAL (refer ASX announcement - 24 June 2026) and has executed a US$169 million unsecured loan facility should this be required. 9 Additional sales may occur should an increase in Hengjaya Mine’s 2026 RKAB sales quota be received.
Page 9
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 9 Cashflow The following cashflow waterfall provides a reconciliation of cash movements for the Group during the September 2026 quarter. Adjusted EBITDA to cash from Operations Units RKEF Mining HPAL10 Adjusted EBITDA US$m 40.7 76.9 0.6 Tax paid US$m (13.6) (4.1) – Inventory movement11 US$m 24.6 (13.1) (27.9) Receivables movement US$m (34.3) (43.0) – Payables movement US$m (23.9) 5.0 – Other US$m (0.8) (4.3) – Cash from operations US$m (7.3) 17.4 (27.4) Cash movements were driven primarily by working capital. RKEF and Mine trade receivables increased, the latter on sales up 56% quarter -on-quarter. ANI inventories rose on shipment timing, which management is working to unwind. In the trading division, a June quarter customer advance was applied to an August shipment, and HNC was prepaid for July and August MHP allocations. Corporate costs include a US$4.4m advisor fee for Sphere’s 10% ENC acquisition, recoverable from Shanghai Decent. 10 HPAL represents HPAL trading division and therefore excludes HNC 11 Inventory includes prepayments predominately for inventory with a small portion of other prepayments.
Page 10
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 10 Expenditures Expenditure on mine production and development activities at the Hengjaya Mine during the quarter totalled US$103.3m, of which US$0.4m was capex. Exploration expenditure at the Sampala Project was US$11.9m and at the Siduarsi Project was US$0.4m. Related party expenditures During the quart er, the aggregate amount of payment s to related parties and their associates totalled US$0.9m, comprising US$0.8m of payments to Directors or Director -related entities for Directors’ consulting fees and US$0.1m in fees paid to The Trustee for Mining Services Trust (MIS), an entity in which Director Norman Seckold has a controlling interest. MIS provides full administrative services, including administrative, accounting and company secretarial staff both within Australia and Indonesia, office premises, services and supplies to the Group. Corporate highlights 29 July 2026 – Maiden MHP Production at ENC 11 August 2026 – Maiden Nickel Cathode Production at ENC 21 October 2026 – ENC Project Financing Contact information For further information, please contact: Justin Werner Andrew Coleman Julia Maguire Managing Director Head of Investor Relations Media Enquiries jwerner@nickelindustries.com acoleman@nickelindustries.com julia@thecapitalnetwork.com.au +62 813 8191 2391 +62 811 1938 331 +61 2 7257 7338
Page 11
SEPTEMBER 2026 QUARTERLY ACTIVITIES REPORT 11 Appendix A RKEF operations – additional details Production Units HNI RNI ANI ONI Total Total nickel production tonnes 1,855 3,918 10,608 11,442 27,822 - June quarter tonnes 3,944 4,075 8,735 11,110 27,864 Cash costs US$/t Ni 15,492 13,835 13,124 12,327 13,054 - June quarter US$/t Ni 12,231 12,717 12,689 12,606 12,595 Sales Units HNI RNI ANI ONI Total Tonnes sold tonnes 1,855 3,918 9,622 11,442 26,837 - June quarter tonnes 3,944 4,075 8,832 11,110 27,961 Adjusted EBITDA US$m (1.8) 2.8 11.9 27.8 40.7 - June quarter US$m 9.3 7.8 17.6 25.6 60.3 Adjusted EBITDA/t US$/t Ni (979) 719 1,237 2,428 1,516 - June quarter US$/t Ni 2,362 1,914 1,998 2,233 2,157 Appendix B Revised formula Metal Previous Formula (Single Metal) New Formula (Multi Metal) Notes Nickel HPM = (1-MC) x % Ni x CF x HMA HPM = (1-MC) x [(% Ni x CF x HMA) Previously CF = 20% when % Ni = 1.9% Now CF = 30% when % Ni = 1.6%. Adjusts by ±1% per ±0.1% % Ni change Cobalt Not included + (% Co x CF x HMA) Only relevant when % Co ≥ 0.05%; CF = 30% fixed Iron Not included + (% Fe x CF x HMA x 100) Only relevant when Fe content ≤ 35%; CF = 30% fixed Chromium (oxide) Not included + (% Cr x CF x HMA x 100)] CF = 10% fixed Source: ESDM and Wood Mackenzie Definitions MC: moisture content %: metal grade CF: correction factor, a multiple which reflects deviation of % Ni from reference point; fixed for other metals HMA: reference price issued by Kementerian Energi dan Sumber Daya Mineral Republik Indonesia (ESDM) for individual metals