0021 GMT - The Huayue Nickel Cobalt HPAL--or high pressure acid leaching--project in which Nickel Industries owns a stake appears likely to keep producing more nickel than its nameplate capacity, Macquarie says following a site visit. "We believe the facility is on track to produce 80,000 tons nickel [contained metal in mixed hydroxide precipitate, or MHP] despite water supply challenges," the bank says. In 2025, the HNC site produced about 85,000 tons of contained nickel, roughly 40% more than its 60,000-ton annual nameplate capacity, says Macquarie. "However, higher sulphur prices could pressure HPAL margins," the bank says. "Site-visit discussions indicated that the operator is assessing sulphur recovery from tailings as a potential offset, although the economics and timing remain unconfirmed." Shares in Nickel Industries are up 1.0% at A$0.7725.