Business
Nickel 28 Capital Updates Dividend Policy and Debt Repayment Strategy
TORONTO / Jan 30, 2023 / Business Wire / Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) provides the following update to shareho
About this update from Nickel 28 Capital Corp
[{"type":"text","content":"TORONTO / Jan 30, 2023 / Business Wire / Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) provides the following update to shareholders from its Executive Chairman, Mr. Anthony Milewski. As the Company continues to approach repayment of its share of the outstanding Ramu construction debt, management is increasingly asked by shareholders and analysts alike how the Company intends to use its portion of the free cash flow from the sale of nickel and cobalt from the Ramu Nickel project once the debt is repaid. Our answer has remained consistent since the Company's inception and has not changed: Nickel 28 intends to return the significant majority of all cash flow net of operating expenses in the form of dividends or distributions on a regular basis as payments from Ramu are received. Funds received through the balance of 2023 and into 2024 will be used to accelerate the repayment of the remaining construction debt, bringing forward the timing of final repayment. Management continues to anticipate that the Ramu construction debt will be fully repaid during 2024, subject to nickel and cobalt prices, production rates, production costs and payabilities, with the outstanding construction debt balance standing at approximately US$73 million as at October 31, 2022. In light of the Company's positioning with respect to repayment of the Ramu construction debt and given the current share price, the board and management of the Company firmly believe that any capital raising or corporate transactions would be value destructive at this time, and that patience is the most prudent and value accretive long-term strategy. The board and management of the Company are uniquely aligned with shareholders in a way rarely seen in the metals and mining space. Our aggregate share ownership represents in excess of 25% of the issued and outstanding common shares of the Company on a fully-diluted basis, making the board and management the largest block of shareholders by a wide margin and heavily invested in the future success of the Company. The Company also believes that for most shareholders a return of capital pursuant to a dividend or distribution will represent the most tax efficient and value maximizing alternative. Explanation of Payabilities and Timing of Payments Based on questions we receive from shareholders, there is o...