Which Australian Nickel Stocks Delivered the Best Returns in 2025?

The nickel market faced headwinds throughout 2025, with prices stagnating during the second half as supply surpluses collided with anaemic demand growth. Indonesian producers maintained robust output, while Western operations struggled with cost pressures amid depressed metal prices. Simultaneous shifts in battery chemistry—favouring lower nickel concentrations—and China’s sluggish property sector compressed stainless steel demand, creating widespread challenges across the sector. Yet despite these market headwinds, certain Australian nickel stocks have still managed to capture significant investor interest this year.

Market Overview: Why Australian Nickel Stocks Remain in Focus

Long-term nickel demand forecasts continue to suggest structural undersupply over the coming years, with projections indicating a demand deficit should materialise in subsequent quarters. This longer-term optimism has supported valuations, particularly for companies with near-term production potential and large, economic resource bases. The following five Australian nickel stocks demonstrated notable outperformance in 2025, ranked by year-to-date appreciation and assessed using year-end market data.

1. Pivotal Metals (ASX:PVT) — Exploration Success Driving 85.71% Gains

With a year-to-date appreciation of 85.71 percent, Pivotal Metals emerged as the top performer among Australian nickel stocks reviewed, commanding a market capitalisation of AU$14.71 million at a share price of AU$0.013.

The company operates two exploration properties in Québec, Canada: the advanced-stage Horden Lake project and the Belleterre-Angliers greenstone belt prospect. Both host mineralisation of copper, nickel, and platinum-group metals. Metallurgical testing at Horden Lake delivered copper recoveries between 87 and 94 percent, with copper concentrates grading 22 to 28 percent. Nickel processing achieved concentrates grading approximately 12 percent nickel, with recovery potential exceeding 50 percent.

The April resource update defined Horden Lake’s JORC-compliant inventory at 407,000 tonnes of contained copper equivalent across 37 million tonnes of ore at 1.1 percent copper equivalent, inclusive of 72,000 tonnes of contained nickel. Exploration momentum accelerated at Belleterre, where May drilling confirmed Bonanza-grade gold mineralisation connected to historic Lorraine mine extensions. August electromagnetic surveys identified previously undrilled conductor targets, while October results from Midrim produced high-grade copper-nickel discovery extending 150 metres below prior drilling at the Alotta target.

Most recently, November findings verified the Kelly Lake East prospect, situated 6.6 kilometres from Lorraine, hosting widespread copper-gold anomalies. Surface samples returned grades to 1.9 g/t gold, 2 percent copper and 0.71 percent zinc. An extensive drill program is slated to commence at four priority targets in January 2026. Pivotal’s shares peaked at AU$0.03 on October 28.

2. Ardea Resources (ASX:ARL) — Large-Scale Nickel-Cobalt Developer Posts 79.41% Return

Ardea Resources delivered 79.41 percent year-to-date appreciation, with a market cap of AU$111.73 million and share price of AU$0.61. The company is progressing the wholly-owned Kalgoorlie nickel project (KNP) in Western Australia, which encompasses the Goongarrie Hub deposit—described as the largest nickel-cobalt resource in the developed world.

The 2023 prefeasibility assessment outlined 194.1 million tonnes of ore at 0.7 percent nickel and 0.05 percent cobalt, translating to 1.36 million tonnes of contained nickel and 99,000 tonnes of contained cobalt. The 40-year mine plan envisions 30,000 annual tonnes of nickel and 2,000 tonnes of cobalt production through open-pit extraction.

In February 2024, two major Japanese industrial groups—Sumitomo Metal Mining and Mitsubishi—committed AU$98.5 million for definitive feasibility study (DFS) funding. By July, the consortium had contributed half the funding commitment, earning a 17.5 percent project interest. September infill drilling at Goongarrie South comprised 230 holes totalling 16,234 metres, yielding 249 significant intercepts, including one 1.75 percent nickel interval spanning 34 metres from 12 metres depth.

The DFS remains scheduled for H1 2026 completion. The study incorporates a simplified high-pressure acid leach flowsheet targeting 3.5 million tonnes annual throughput. Ardea also signed a heritage agreement with indigenous claimants in September covering 100 tenements, establishing cultural site protection frameworks. October brought renewal of the project’s major project status for three additional years, streamlining permitting pathways. Shares hit AU$0.65 in mid-October.

3. Australian Mines (ASX:AUZ) — Multi-Project Portfolio Shows 66.67% Growth

Australian Mines registered 66.67 percent year-to-date gains at AU$0.015 per share, representing a market cap of AU$28.71 million. The company operates exploration and development properties across Queensland, New South Wales, and Brazil.

The flagship Sconi nickel-cobalt project in Queensland targets carbon-neutral feedstock production for electric vehicle battery manufacturing. A June 2019 feasibility study showed AU$817 million post-tax net present value, 15 percent internal rate of return and 5.8-year payback, with original production commencement targeted for 2028. However, the depressed nickel price environment has prompted portfolio diversification, including the Flemington scandium-nickel-cobalt project and the Brazilian Jequie rare earth elements operation.

In January 2025, management signalled exploration of Sconi alternatives, including collaboration with government agencies on environmental studies and engagement with joint venture partners and battery manufacturers. June brought an expression of interest from HMS Bergbau regarding long-term offtake discussions for nickel, cobalt and scandium. As part of its Brazilian expansion, Australian Mines agreed in July to earn up to 80 percent of the Boa Vista gold project from GoldMining subsidiary Cabral Resources, which boasts 336,000 historic gold ounces.

Recent quarters show ongoing discussions with European partners regarding Sconi development and offtake arrangements. The stock peaked at AU$0.026 in mid-October.

4. Centaurus Metals (ASX:CTM) — Advancing Brazilian Nickel Sulphide Deposit Up 26.76%

Centaurus Metals gained 26.76 percent year-to-date, closing at AU$0.45 with a market capitalisation of AU$247.64 million. The company advances the Jaguar nickel sulphide project in Brazil’s Para state, originally purchased from Vale in April 2020 for US$7 million plus 0.75 percent royalty on production. The agreement includes an offtake provision allowing Vale first right to 100 percent of production at prevailing market prices.

May 2025 optimisation studies refined the prior 18-year mine plan into a 15-year scenario, projecting US$735 million after-tax net present value, 34 percent internal rate of return and 1.8-year payback at US$19,800 nickel pricing. The reserve base includes 406,100 tonnes of contained nickel grading 0.78 percent from 52 million tonnes of ore, with average production planned at 22,600 annual tonnes over the first seven years.

Pre-production mining commences Q2 2026, beginning with vegetation clearance and contractor facility construction. August capital financing of AU$23 million supported project progression. October’s mining lease approval represented the final permitting hurdle, clearing the way for construction commencement. The company confirmed all environmental and mining licenses now in place. The stock reached AU$0.495 in mid-October.

5. Alliance Nickel (ASX:AXN) — Early-Stage Developer Rises 8.82% Amid Strategic Reviews

Alliance Nickel posted 8.82 percent year-to-date appreciation at AU$0.037, with market cap of AU$28.17 million. The company develops the NiWest nickel-cobalt project in Western Australia, adjacent to established nickel-cobalt operations, benefiting from over AU$30 million in prior exploration and study investment.

May 2024 major project status designation marked the first award since nickel earned critical mineral classification, providing three-year regulatory navigation support. The November 2024 DFS established AU$1.5 billion after-tax net present value, 17.6 percent internal rate of return and five-year payback at US$20,216 annual average nickel pricing. The JORC resource comprises 971,000 tonnes of nickel from 93.4 million tonnes at 1.04 percent average grade.

The 35-year mine plan targets 20,000 annual contained nickel tonnes and 1,600 cobalt tonnes over the initial 12 years. March 2025 heap-leach testing validated DFS assumptions, confirming readiness to advance financing and development. The company maintains AU$5.2 million in unsecured loan facilities and appointed financial advisors in October to explore a potential Nasdaq listing through strategic transaction. However, November brought termination of an offtake agreement by an automotive partner, attributed to milestone delays arising from difficult market conditions and financing constraints. The partner expressed willingness to renegotiate terms reflecting revised timelines and market realities. The stock reached AU$0.051 in mid-October.

Conclusion

Australian nickel stocks have demonstrated divergent performance trajectories in 2025, reflecting project-specific dynamics and development stage rather than uniform sectoral trends. While longer-term nickel market fundamentals support structural deficit scenarios in coming years, near-term pricing pressures and financing uncertainties continue to differentiate winners from laggards among early-stage and development-stage operations.