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Nickel 28 Releases Ramu Q2 2023 Operating Performance
TORONTO--(BUSINESS WIRE)--Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) is pleased to provide operational results for the produ
About this update from Nickel 28 Capital Corp
[{"type":"text","content":"TORONTO--(BUSINESS WIRE)--Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) is pleased to provide operational results for the production quarter ending June 30, 2023 for the Company’s largest asset, being the Ramu Nickel-Cobalt (“Ramu”) integrated operation in Papua New Guinea. Nickel 28 currently holds an 8.56% joint-venture interest in Ramu which is operated by Metallurgical Corporation of China. Q2 2023 Ramu Highlights: Production of 7,784 tonnes of contained nickel and 717 tonnes of contained cobalt in mixed hydroxide precipitate (\"MHP\") during the second calendar quarter, continuing to place Ramu as one of the top producers of MHP globally. Sales of 9,078 tonnes of contained nickel and 822 tonnes of contained cobalt in MHP during the second calendar quarter. LME average nickel price of US$10.16/lb. in Q2 2023, a decline of 23% from the same period last year. The average H1 2023 LME nickel price was $10.99/lb. compared to an average LME nickel price of $12.50/lb. for H1 2022. Fast Markets average cobalt price of US$15.07/lb. in Q2 2023, a decline of 61% from the same period last year. The average H1 2023 Fast Markets cobalt price was $16.03/lb. compared to an average Fast Markets cobalt price of $36.93/lb. for H1 2022. Actual cash cost, net of by-product credits of $3.92/lb. of nickel produced as MHP, representing a 29% increase from the same period last year. H1 2023 cash cost, net of by-product credits of $3.49/lb. of nickel representing an increase of 57% from the same period the prior year. “The second quarter of 2023 saw slightly reduced production at Ramu, which impacted cash costs; however, we anticipate costs will return to historical levels by the end of the calendar year,” stated Nickel 28’s Executive Chairman, Anthony Milewski. “Softness in demand for NiSO4 and CoSO4 in China provided an opportunity for Ramu to carry out maintenance activities, which were scheduled for later in the year; however, the project was still able produce at near capacity in the quarter, a testament to Ramu’s credibility as a consistent producer of MHP. In addition, a decline in by-product credits, primarily due to significantly reduced cobalt prices compared to 2022, contributed to elevated cash costs. The stabilization in input commodity costs, including sulphur and fuel oil, have parti...