Harita Nickel Starts Exporting Nickel Sulfate This Month

PT Trimegah Bangun Persada Tbk. (NCKL) or Harita Nickel is ready to start exporting nickel sulfate this month. This was achieved because the factory was completed and officially operational. This factory is the first nickel sulfate factory in Indonesia.

“We will conduct our first export in June with the aim of going to China. Our capacity is able to facilitate all of our MHP production into nickel sulfate,” said NCKL Main Director Roy Arman Arfandi in a webinar with Samuel Sekuritas Indonesia (07/06/2023).

According to market.bisnis.com, Roy said the factory could operate at full capacity from June to July this year. Going forward, it will be possible to have additional margins for NCKL.

The factory, which will be built on Obi Island, is believed to be the largest nickel sulfate factory in the world. NCKL will continue to refine and increase its capacity. So it can reach 240,000 metric tons/year, with a metal nickel content of 54,000 tons/year.

The operation of this factory has a good impact on NCKL shares. Now NCKL shares are moving in the green zone. The shares rose 2.29 percent or 20 points to IDR 895 at the end of trading yesterday.

“There has been a breakout of the downtrend line over the past few days. We have seen slight movement because we just had a breakout. NCKL can rally again, although somewhat slowly and is still testing support levels, at least to IDR 1,100, before heading to IDR 1,475 ,” said Samuel Sekuritas Indonesia analyst William Mamudi.

With the current NCKL price, it is still quite a long way from reaching the next resistance. William assesses that there is still room for improvement. However, one of the risks faced is deeper pressure on the JCI further to 6,500.

“But the downside risk is smaller than the upside potential,” he explained.