[Click eStock] "Spear Secures Stable Nickel Supply...Direct Benefits Exceed 180 Billion Won"

On January 2, Meritz Securities analyzed that Spear's direct participation in the global nickel supply chain and its efforts to secure strategic minerals are expected to generate direct benefits of over 180 billion won. The company is also strengthening its competitiveness in raw materials for the aerospace special alloy business, while minimizing financial burden through a funding structure that avoids equity dilution.

On December 31 of last year, Spear announced that it would acquire a 10% stake in Excelsior International Investment (EII), an Indonesian nickel smelting operation and sales company owned by Nickel Industries Limited (NIC), a top-tier global nickel mining group. Jeong Jisoo, a researcher at Meritz Securities, described this transaction as "an event that perfectly capped off 2025, marking the acquisition of a stake in a nickel smelter."

The total amount required for the stake acquisition is 240 million dollars. Of this, the first interim payment of 210 million dollars, excluding the already-paid deposit, has already been raised from overseas investors through acquisition financing. For the second interim payment and the remaining balance, Spear decided to provide 1.8 million treasury shares as collateral to NIC. The market has responded favorably to this approach, as it does not involve equity dilution like a rights offering or a convertible bond issuance. Jeong emphasized, "This is the best-case scenario, as the business is being carried out without equity dilution through a rights offering or convertible bonds."

This investment goes beyond a simple financial investment. In the context of global supply chain restructuring and heightened geopolitical risks, it is significant that Spear has established a foundation for the stable procurement of nickel, a strategic mineral. Jeong analyzed, "The stable supply of nickel raw materials, a strategic mineral, provides an opportunity to further strengthen the company's supply management capabilities for aerospace special alloys."

The smelter in which Spear acquired a stake is the ENC Smelter, located in the Morowali Industrial Park in Indonesia, and is a large-scale facility that produces approximately 72,000 tons of nickel and cobalt annually. This project is a joint venture between China's Tsingshan Group and NIC, and is considered a key hub in the global nickel supply chain. Spear's 10% stake corresponds to an annual production volume of about 7,200 tons. Applying the London Metal Exchange (LME) nickel price of 16,646 dollars per ton, the direct annual benefit is expected to exceed 180 billion won. In addition, there is potential for additional profit generation in the manufacturing and distribution of superalloys using nickel.

The market views this investment as clarifying Spear's medium- to long-term growth story. Expectations are rising, especially as major events are scheduled in the global space industry around 2026. Jeong pointed out, "There will be a wealth of significant events in the global space industry in 2026, including the United States Artemis Mission II, SpaceX's IPO plans, and the Starship Mars launch."

SpaceX's activities are also an important variable for domestic value chain companies. On October 13 of last year, SpaceX signaled a transition to the V3 version of Starship following the successful 11th flight test of Starship. After additional testing in early 2026, full-scale commercialization is expected to begin as early as mid-year. Jeong predicted, "From the start of Starship mass production, the benefits for domestic SpaceX value chain companies will increase significantly."

The resolution of financial uncertainty is also cited as a positive factor. Most of Spear's third convertible bond issuance has reportedly been exhausted, and the risk of additional funding for the nickel smelting project has been greatly reduced. Jeong commented, "With the elimination of additional funding risks associated with the nickel smelting project, a positive impact on the stock price is expected."