Base metals prices have recovered swiftly since the onset of the second quarter with copper and nickel mainly leading the front, prompting many ASX-listed base metals mining companies to expand on prospects to lock-in the decent recovery.

LME copper prices (near-future) have recovered ~ 45.70 per cent from the level of USD 4,617.50 a tonne (as on 23 March 2020) to the present level of USD 6,728.00 a tonne (as on 28 August 2020) while nickel prices have recovered ~ 39.43 per cent.

The surge in base metals prices is now prompting ASX-listed mining companies to re-evaluate their prospects, which have been hibernating for quite a while over a deep plunge in base metals prices over the COVID-19 outbreak.

While many ASX-listed mining stocks such as IGO Group (ASX:IGO), Sandfire Resources NL (ASX:SFR) are making their way to the top over the gush in base metals prices, ASX-listed nickel mining company – Nickel Mines Limited (ASX:NIC) is now drawing attention over the recent increase in its ownership of key nickel assets.

Furthermore, the Company has finished the half-year ended 30 June 2020 with a 30.9 per cent surge in revenue and a significant early voluntarily repayment of debt facilities.

Half-year Revenue Climbs 30.9 per cent Against PCP

The Company reported a 30.9 per cent surge in revenue for the half-year ended 30 June 2020 at USD 227.8 million against the previous corresponding period.

However, despite strong growth in the revenue, the profit from ordinary activities after tax declined by 63.9 per cent against pcp to stand at USD 24.4 million. 

Nickel Mines Increases Stake in Hengjaya Nickel and Ranger Nickel RKEF project

During the period, the Company secured approval from shareholders related to increasing its interest in the Hengjaya Nickel and Ranger Nickel RKEF project from 60 per cent to 80 per cent.

Early Retirement of Debt Facilities

Apart from increasing its stake, NIC made a further voluntary early repayment of USD 10M against the Ranger senior debt facility in April, reducing the outstanding debt to USD 55 million; and,

To understand debt: read here

Furthermore, during the onset of the year 2020, Hengjaya Nickel commenced routine monthly repatriation of funds to its Singaporean holding company, and during the six-month ended 30 June 2020, the entity has repatriated USD 25.2 million to Nickel Mine.

The Group’s attributable nickel metal production for the six months ended 30 June 2020 stood at  6,446.0 tonnes.

New Resource Estimates

NIC updated its resource estimates post increasing its stake in the Hengjaya mine, and as per the Company, it now holds a total of 185 million tonnes of Resources at an average grade of 1.3 per cent Nickel, 0.08 per cent Copper, and 28 per cent iron.

As per the Company, the combined Mineral Resource of 185 million tonnes at the prospect now represent 2,405,000 tonnes of nickel and 148,500 tonnes of cobalt, from an area of 1,144 hectares of the 5,983- hectare Hengjaya mine tenement area.

The total updated resources exceed the previous resource estimate, and the Measured and Indicated Resources category have now increased by 185 per cent 117 per cent, respectively.

However, Inferred Resources have now declined by 49 per cent in the wake of strong resource confidence.

The Stock of the Company last traded at $0.687 (as on 1 September 2020, AEST: 2:00 PM), up by 1% as compared to its previous close on ASX.