The company's combined sales from its Hengjaya Nickel, Ranger Nickel, Angel Nickel and Oracle Nickel RKEF projects were $492.2 million for the three months to Dec. 31, down 6.1% from the prior quarter, on the back of softer contract prices.

Shares of the firm jumped as much as 15% to A$0.69 and were set for their biggest intraday gain since Oct. 16, 2020.

"The integrated nature of the company's operations and its position in the bottom quartile of the class-1 and class-2 cost curves has resulted in a significant financial outperformance relative to its global nickel peers," Nickel Industries said.

A sharp slide in nickel prices over the past year, driven by a jump in Indonesian supply, has hit Australian nickel producers, leading to mine closures, production cuts and writedowns in recent months.

The Australia-listed specialty miner added it has seen a marginal improvement in nickel pig iron (NPI) prices in early 2024, compared with the multi-year lows witnessed in December.

RKEF's production in the December quarter was 34,450 tonnes of nickel metal, 1.8% higher than the September quarter production.

The company also said it intends to return between 30% and 60% of its free cash flow to shareholders via regular dividends.

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Krishna Chandra Eluri)