Nickel Industries (ASX:NIC) is facing key concerns of geopolitical risks and Indonesia's unpredictable regulatory environment, according to a Thursday Jefferies note.
The company reported second-quarter ore production of 4.1 million wet metric tonnes, up 4% from the first quarter, according to an Australian bourse filing on July 28.
Weak cash conversion may require financial support from shareholder Tsingshan Holding Group to complete the $169 million acquisition of PT Teluk Metal Industry, the note added.
Jefferies kept a hold rating on Nickel Industries and cut its price target to AU$0.90 from AU$1.05.
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.