Ann: HNI Commences Transition to Nickel Matte Production, page-17

Nickel Industries still has 80% interest in Hengjaya mine which I think is ramping up very nice. 300 million dry tonnes at 1.22% Ni is nothing to be sniffed at in the grand scheme of things.

As the market becomes a low cost / large production economic structure that will favour NIC a lot. They have more capacity now.

The addition of Nickel Matte will be solid.
The addition of cheaper energy from the power-plant is solid.
The more efficient they can make it the better next year.
Their focus should be on efficiency of supply and of power. The assets are up and running.
Anything they can do to drive down the costs will be key I think.

I am very excited to see how the mine comes more and more into play next year:

- High grade Saprolite Resource of 72 million wet metric tonnes (‘wmt’) at 1.8% nickel (cut-off
grade 1.5% nickel), represents a source of long-term ore supply to the IMIP where the Company’s
Hengjaya Nickel (‘HNI’) and Ranger Nickel (‘RNI’) and Oracle Nickel (‘ONI’) RKEF projects will
have total combined ore requirements of approximately 8.8 million wmt per annum. Hengjaya Mine
is expected to deliver 3.5-4.0 million wmt of saprolite ore to the IMIP upon completion of the haul
road linking the mine to the industrial park.

- Limonite Resource of 151 million wmt at 1.2% nickel and 0.14% cobalt (cut-off grade 1.0%
nickel) positions the Hengjaya Mine as one of the long-term ore suppliers to the IMIP’s Huayue and
QMB HPAL projects, which are expected to require up to 20 million wmt per annum to produce nickel
cobalt mixed hydroxide precipitate for the electric vehicle battery market. This significant limonite
resource also leaves the Hengjaya Mine well positioned to supply any future HPAL projects the
Company may invest in.

I am excited to see what HPAL can produce going forward, with the materials ready that could be a powerful driver in 2023. QMB will be very important it seems going forward.