Analysts at Citi say Nickel Industries Ltd (ASX:NIC) is expected to see higher volumes and reduced costs in the September quarter after commissioning a power plant at its Oracle Nickel (ONI) project.

The ONI project reported a total nickel production of 10,141 tonnes for the quarter, nearly double compared to the previous quarter.

Citi has given the company a price target of A$1.00 and rates it as “neutral.” Four out of seven analysts rate the stock as “buy” or higher.

The company’s shares are down 15.0% year-to-date.