Nickel 28 Announces Fiscal 2023 Financial Results
TORONTO, ONTARIO, May 17, 2023 — Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) has released its financial results for the financial period ended January 31, 2023.
The Company’s Chairman, Anthony Milewski is pleased to announce that “with another strong year of production and sales performance from Ramu, the Company continues to receive significant cash distributions from Ramu. As a result of Ramu’s strong operating results and financial performance, the Company repaid US$21.3 million of its construction debt, which leaves a remaining construction debt balance of US$55.8 million at the end of the fiscal year.” Mr. Milewski continued, “we would once again like to thank our joint venture partner, Metallurgical Corporation of China, for another exceptional year.”
Full Year 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 and the Company during the year include:
- Full year debt repayment of US$21.3 million, with a remaining construction debt balance of US$55.8 million as at January 31st, 2023.
- Production of 34,302 tonnes of contained nickel and 2,987 tonnes of contained cobalt in mixed hydroxide precipitate (MHP) placing Ramu as one of the top producers of MHP globally.
- Total Ramu project revenue of over US$820 million.
- Average cash costs for the year, net of by-product sales, of US$3.37/lb. of contained nickel.
- Total net and comprehensive income of US$6.1 million or US$0.07 per share.
“Ramu’s consistent performance of production at the bottom of the cost curve continues to translate into strong cash flow regardless of commodity prices. Given this, we expect Ramu to again deliver strong results in 2023 as EV demand for nickel rich batteries improves,” stated Justin Cochrane, President of the Company.
About Nickel 28
Nickel 28 Capital Corp. is a nickel-cobalt producer through its 8.56% joint-venture interest in the producing, long-life and world-class Ramu Nickel-Cobalt Operation located in Papua New Guinea. Ramu provides Nickel 28 with significant attributable nickel and cobalt production thereby offering our shareholders direct exposure to two metals which are critical to the adoption of electric vehicles. In addition, Nickel 28 manages a portfolio of 10 nickel and cobalt royalties on development and exploration projects in Canada, Australia and Papua New Guinea.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain information which constitutes ‘forward-looking statements’ and ‘forward-looking information’ within the meaning of applicable Canadian securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements in this news release include but are not limited to: statements with respect to anticipated future production, sales and cash flow from Ramu and matters relating thereto. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, most 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 assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements.
The forward-looking statements contained herein are made as of the date of this release and, other than as required by applicable securities laws, the Company does not assume any 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 either approved or disapproved of the contents of this news release.
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Riyaz Lalani & Dan Gagnier
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