Atlantic Nickel's Santa Rita mine in Brazil produced a record 12,464 tonnes of nickel concentrate in August. The Appian-owned miner earned $66.5 million of adjusted EBITDA in the first half while cutting its cash cost to $3.10 a pound.
At a glance
- Santa Rita produced a record 12,464 tonnes of nickel concentrate in August, with recovery of 86.72%.
- First-half revenue reached $163.3 million and adjusted EBITDA $66.5 million.
- The cash cost fell to $3.10 a pound from $3.48 in 2025, putting the mine in the industry's lowest-cost quarter.
Background
Atlantic Nickel runs the Santa Rita nickel sulphide mine in Bahia, Brazil, which restarted in 2019 under the ownership of investment firm Appian Capital Advisory. It sells nickel concentrate, a partly processed product, to smelters. C1 cash cost is the direct cost of producing a pound of nickel, before items such as depreciation, and is a common way to compare mines.
What happened
Atlantic Nickel and Appian said on October 5 that Santa Rita produced 12,464 tonnes of nickel concentrate in August. It was the mine's best month since it restarted under Appian's ownership in 2019. Metallurgical recovery, the share of nickel captured from the ore, reached a record 86.72%.
The mine also had a strong first half. It processed 3.39 million tonnes of ore and shipped 49,717 tonnes of concentrate to customers in Canada, Finland and China. Its concentrate graded between 12.5% and 13.4% nickel. Gross revenue reached $163.3 million and adjusted EBITDA $66.5 million.
Why profits held up
Lower costs did much of the work. Santa Rita's average C1 cash cost fell to $3.10 a pound in the first half, from $3.48 a pound across 2025. That places it among the first quartile of nickel producers, the lowest-cost 25% of the industry.
Better recovery also helps. The mine averaged 84% recovery in 2025, so August's 86.72% means more saleable nickel from every tonne of ore. "These results reflect the strength of our operating model and our disciplined approach to value creation," said Milson Mundim, Appian's country manager in Brazil.
What comes next
Atlantic Nickel is moving Santa Rita underground. The company says that could extend the mine's life beyond 30 years at about 30,000 tonnes of nickel equivalent a year. It completed a pre-feasibility study in 2024 and is now working on a definitive feasibility study.
Work has already begun underground. The first blast at the South Portal took place in March 2026, and more than 600 metres of tunnels have been dug since.
Our read
Outlook: neutral. One mine's record month does not change the global nickel balance. The story matters more for Appian and Atlantic Nickel than for nickel prices.
What to watch
- The definitive feasibility study for Santa Rita's underground mine.
- Whether the mine can hold costs near $3.10 a pound in the second half.
- Monthly output against the August record of 12,464 tonnes.
For information only, not investment advice.
Nickel price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-03-18: Atlantic Nickel reports 2025 revenue of $274.5 million and EBITDA of $103.4 million.
- 2026-10-05: Atlantic Nickel reports record August output and first-half adjusted EBITDA of $66.5 million.
Supply Drivers
A planned underground mine could produce about 30,000 tonnes of nickel equivalent a year for more than 30 years.
Mining Production
Santa Rita produced a record 12,464 tonnes of concentrate in August as recovery improved.
What could lift prices
- The underground expansion is still at feasibility stage, so its extra supply is years away.
- Recovery may not hold at August's record level every month.
What could weigh on prices
- Low-cost producers like Santa Rita can keep supplying even if nickel prices fall.
- Record recovery means more nickel from the same ore.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Brazil | Low | A Bahia mine is producing record output and planning decades more mining underground. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Base Metals Mining | Positive | A first-quartile cost position shows a sulphide nickel mine earning healthy margins. |
Who gains, who loses
- Appian Capital Advisory: Its Brazilian nickel mine is producing record output at lower cost.
- Higher-cost nickel producers: Low-cost mines like Santa Rita can undercut them when prices are weak.
Other ways this could play out
- If the feasibility study is positive, Santa Rita could keep producing for more than 30 years.
- If recovery slips back toward 2025's 84% average, monthly output would fall from August's record.
Price risks
- A sharp nickel price fall would cut Atlantic Nickel's EBITDA even at low cost.
- Holding August's record pace would add more concentrate to the market.
Historical comparison
- 2025: Atlantic Nickel earned $103.4 million of EBITDA on $274.5 million of revenue, at a C1 cost of $3.48 a pound.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
Related
Brazil