TORONTO–(BUSINESS WIRE)–Nickel 28 Capital Corp. (“Nickel 28“or the”Company”) (TSXV: NKL) (ESF: 3JC0) released its results for the quarter ended July 31, 2022.
“During the quarter, Ramu continued its strong production results and remained one of the lowest cost nickel mines in the world,” said Anthony Milewski, company president. “Ramu sales continue to be slower than expected, but nickel and cobalt prices remain strong.”
Quarterly 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 quarter. Highlights of Ramu and the company during the quarter include:
– Strong cash balance at the end of the quarter of US$4.6 million, providing ample liquidity for the Company.
– Produced 8,128 tonnes of contained nickel and 695 tonnes of contained cobalt in mixed hydroxide (MHP) during the second calendar quarter, placing Ramu as the world’s largest producer of MHP.
– Actual cash costs for the second calendar quarter, net of by-product sales, of US$3.03/lb. nickel content.
– Total net and comprehensive income of $3.0 million ($0.03/share) and $0.2 million ($0.00/share) for the three and six months ended July 31, 2022, respectively , largely due to declining sales and rising input and labor costs.
Ramu Update
On September 11, 2022, Papua New Guinea suffered a magnitude 7.6 earthquake 150 km south of Madang. Emergency protocols were initiated at Ramu Mine and it was determined that no personnel were injured. MCC has reduced throughput at the Ramu refinery while specialists are engaged to ensure the integrity of all key equipment before returning to full production. Ramu is expected to operate at reduced capacity for at least 2 months.
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. In addition, 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 form of these similar terms and expressions. Forward-looking statements 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.
