Nickel 28 announces its financial results and the repayment of a large debt


June 1, 2022 (Source) — Nickel 28 Capital Corp. (“Nickel 28“or the”Company”) (TSXV: NKL) (ESF: 3JC0) released its results for the fiscal year ended January 31, 2022.

Company President Justin Cochrane is pleased to report that “with Ramu’s continued strong cash generation in 2021 and rising nickel prices, the company has paid off the first tranche of its joint venture debt and we received our first cash distribution from Ramu”. Mr. Cochrane continued, “Ramu’s operating results continue to be exceptional and for that we would like to thank our joint venture partner and operator MCC.

Full Year Highlights

The Company’s principal asset, an 8.56% joint venture interest in Ramu Nickel-Cobalt (“Ramu”) integrated operation in Papua New Guinea, had another outstanding year in terms of production, sales and cash flow. Highlights of Ramu and the company during the year include:

– Full-year debt repayment of US$38 million, repaying the operating debt balance in full during the year and reducing the remaining construction debt balance to $73.4 million as of 31 Januaryst2022.

– Production of 31,594 tonnes of contained nickel and 2,953 tonnes of contained cobalt in mixed hydroxide (MHP), making Ramu the world’s largest producer of MHP.

– Total Ramu project revenue over US$690 million.

– Average cash cost for the year, net of by-product sales, of US$2.06/lb. nickel content.

– Total net and comprehensive income of $11.2 million ($0.13/share)

– Strong year-end cash balance of US$4.0 million, providing sufficient liquidity for the Company.

“We continue to see significant tension in the nickel market, with LME nickel prices currently trading above $12.50 per pound of nickel, approximately 50% higher than the LME nickel price. same period last year. We expect another outstanding year of production, sales and cash flow from our Ramu joint venture,” said Anthony Milewski, Chairman of the Company’s Board of Directors.

About Nickel 28

Nickel 28 Capital Corp. is a nickel-cobalt producer through its 8.56% interest in the long-lived, world-class joint venture Ramu Nickel-Cobalt Operation, located in Papua New Guinea. Ramu provides Nickel 28 with significant attributable production of nickel and cobalt, providing our shareholders with direct exposure to two metals critical to the adoption of electric vehicles. Additionally, Nickel 28 manages a portfolio of 13 nickel and cobalt royalties on development and exploration projects in Canada, Australia and Papua New Guinea.

Caution Regarding Forward-Looking Statements

This press release contains certain information that constitutes “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities laws. All statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by words such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these similar terms and expressions. Forward-looking statements contained in this press release include, but are not limited to: statements and figures regarding operating and financial results; statements regarding the outlook for nickel and cobalt in global vehicle electrification; statements relating to the repayment of the Company’s Ramu operating debt; statements related to the impacts on production of the Covid-19 pandemic; and statements regarding the business and assets of the Company and its future strategy. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. Should one or more of the risks or uncertainties underlying these forward-looking statements materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may differ materially from those expressed or implied. by forward-looking statements.

The forward-looking statements contained herein are made as of the date of this release and, except as required by applicable securities laws, the Company undertakes no obligation to update or revise them to reflect new events or circumstances. The forward-looking statements contained in this release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No securities regulatory authority has approved or disapproved of the contents of this press release.


Investor contacts:

JUstin Cochrane
Tel: 647.846.7765
Email: [email protected]

Tana T. Thorsen