2130 GMT - Heightened geopolitical and policy instability has eroded Jefferies's confidence in Nickel Industries's earnings visibility and growth outlook. Indonesia has proposed changes to its royalty structure that would drive a 15% decrease in long-term earnings from Nickel Industries's current projects, the bank estimates. The policy shift hasn't been legislated yet. Still, consultations follow changes in onshore earnings retention for 12 months from March 1, and the lowering of nickel ore mining quotas to 200 million tons from 240 million tons in 2024, analyst Mitch Ryan says. "We reinstate a 20% risk discount to net present value to account for rising macro uncertainty, heightened geopolitical and policy instability," Jefferies says. Its price target falls 19% to A$0.65/share. Nickel Industries ended Tuesday at A$0.605. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
March 11, 2025 17:30 ET (21:30 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.