Business
Nickel 28 Announces Q3 2021 Financial Results
TORONTO / Nov 09, 2021 / Business Wire / Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) is pleased to release its operating resu
About this update from Nickel 28 Capital Corp
[{"type":"text","content":"TORONTO / Nov 09, 2021 / Business Wire / Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) is pleased to release its operating results for the nine-month and three-month periods ending September 30, 2021, for the Company’s principal asset, an 8.56% joint-venture interest in the Ramu Nickel-Cobalt (“Ramu”) integrated operation in Papua New Guinea. Additionally, Nickel 28 is pleased to announce the receipt of its first free cash flow from Ramu, a US$3.2 million payment, as further detailed below. “The Ramu mine continued its outstanding performance in the 3rd quarter of 2021,” stated Anthony Milewski, Chairman of the Board of Directors. “With another strong quarter of operations and sales, and the repayment of the Ramu operating debt, Nickel 28 will continue to receive 35% or our attributable cash flow on a semi-annual basis, which will ensure that the Company can pursue its ongoing strategy of increasing shareholder value.” Q3 2021 Highlights The Company’s principal asset Ramu continued to have another strong quarter. Highlights from Ramu during the quarter include: Total project revenue in YTD 2021 of over US$560 million, as a result of continued strong nickel/cobalt commodity prices and improved payability for mixed hydroxide (“MHP”). Completed repayment of the Company’s operating debt from Ramu’s half year results, the first of two debt tranches from Ramu, which triggered the payment of attributable cash-flow to the Company. Nickel 28’s cash distribution from Ramu in H1 2021 was US$19.3 million of which $10.2 million was used to retire the operating debt and $5.9 million was used to pay down the construction debt netting the balance of $3.2 million which has been received by Nickel 28. Ramu produced 8,649 tonnes of contained nickel and 841 tonnes of contained cobalt in MHP in Q3 with YTD production of 25,227 tonnes of nickel and 2,359 tonnes of cobalt contained in MHP placing Ramu as the world’s largest producer of nickel and cobalt in MHP. Ramu actual cash costs of US$1.55 per pound of nickel produced as MHP (net of byproduct credits) in Q3 and YTD cash costs of US$ 2.00 per pound of nickel, placing Ramu in the top quartile of global nickel producers and the lowest cost producer from HPAL operations according to Wood Mackenzie. Ramu sales of 8,084 tonnes of contained nickel in Q3 on track to excee...