Business
Nickel 28 Capital Announces Financial Results, Large Debt Repayment and New Analyst Coverage
TORONTO / May 03, 2021 / Business Wire / Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC) has released its results for the year end
About this update from Nickel 28 Capital Corp
[{"type":"text","content":"TORONTO / May 03, 2021 / Business Wire / Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC) has released its results for the year ended December 31, 2020. The Company's President and CEO, Justin Cochrane is pleased to announce that \"with the significant cash generation from Ramu in the second half of 2020 and much higher nickel prices in the first part of 2021, we now expect to fully repay the Company’s operating debt around the middle of this year, which is much sooner than our previous guidance.” Mr. Cochrane continued, “MCC, our operating partner in PNG for over 17 years, continues to deliver outstanding performance from Ramu.” Full Year 2020 Highlights The Company’s principal asset, an 8.56% joint-venture interest in the Ramu Nickel-Cobalt (“Ramu”) integrated operation in Papua New Guinea, had another outstanding year in terms of production, sales and cash flow. Highlights from Ramu during the year include: Full year operating debt repayment of US$22.1 million, reducing the operating debt balance to $25.4 million as at December 31st, 2020. A further operating debt repayment of US$15.4 million on January 1st, 2021, reducing the operating debt to less than US$10.0 million. This repayment reflected Nickel 28’s share of Ramu’s operating surplus in H2 2020. Revenue of over US$410 million. Average cash costs for the year, net of by-product sales, of US$2.07/lb. of contained nickel. Production of 33,659 tonnes of contained nickel and 2,941 tonnes of contained cobalt in mixed hydroxide (MHP) placing Ramu as the number one producer of MHP globally. MHP sales of 75,071 dry tonnes. An independently calculated three-year average carbon footprint of 15.6 tonnes of CO2e per tonne of nickel in MHP, considered peer leading to the nickel industry average of 26.6 tonnes of CO2e per tonne of nickel as reported by Wood Mackenzie. Nickel 28 Highlights: Strong year end cash balance of US$6.4 million, providing ample liquidity for the Company. Non-recourse joint-venture debt, as of January 2nd 2021, of US$91.6 million, consisting of US$10.0 million of operating debt and US$81.7 million of construction debt. Sale of two non-core assets in Papua New Guinea for cash milestone payments and royalty agreements on each property. New public listing on the Frankfurt Stock Exchange, under the symbol 3JC. New research coverage fro...