Nickel 28 Capital is filing annual financial statements for the third quarter of 2021


TORONTO / November 30, 2021 / Business Wire / Nickel 28 Capital Corp. (“Nickel 28” or the “society“) (TSXV: NKL) (FSE: 3JC0) has published its results for the three and nine months ended September 30, 2021.

“After a strong performance by Ramu in the first half of 2021, the company reached a significant milestone with the repayment of the first of two non-recourse debt tranches, triggering a cash distribution of $ 3.2 million. For this event, we would like to thank our partners at Ramu, MCC, for their exceptional responsibility and the continued excellent financial and manufacturing results of Ramu, ”said Anthony Milewski, CEO.

Highlights of the third quarter of 2021

The company’s main asset, an 8.56% joint venture stake in Ramu Nickel-Cobalt (“RamuAnother strong quarter in terms of production, sales and cash flow in Papua New Guinea. Ramu’s highlights during the quarter include:

  • Payback of the company’s operating debt from Ramu’s operating results for the first half of 2021, the first of two debt tranches that triggered a cash distribution of $ 3.2 million to the company.
  • Average cash cost, minus by-product credits, for the quarter of US $ 1.55 / lb. of contained nickel, while the corresponding nickel price rose to $ 8.67 / lb for the quarter. This was the highest quarterly margin in the company’s history, due to persistently strong raw material prices and high solvency factors.
  • Project revenue in the third quarter of 2021 of over $ 180 million from quarterly sales of 8,085 tons of contained nickel and 766 tons of contained cobalt in mixed hydroxide products (MHP).
  • The quarterly production of 8,649 tons of contained nickel and 841 tons of contained cobalt in MHP makes Ramu the world’s leading manufacturer of MHP.

Nickel 28 highlights

  • Earnings per share of $ 0.07 and $ 0.19 for the three and nine months ended September 30, 2021, respectively.
  • After repaying the company’s operating debt, the debt of the non-recourse joint venture as of September 30, 2021 consists of construction debt of $ 79.0 million. By comparison, the joint venture’s total debt as of December 31, 2020 was $ 107.1 million.

About nickel 28

Nickel 28 Capital Corp. is a nickel-cobalt producer through its 8.56% joint venture stake in the producing, long-lived, first-class nickel-cobalt operation Ramu in Papua New Guinea. Ramu provides Nickel 28 with significant attributable nickel and cobalt production, giving our shareholders direct exposure to two metals that are critical to electric vehicle adoption. In addition, Nickel 28 manages a portfolio of 13 nickel and cobalt licenses for development and exploration projects in Canada, Australia and Papua New Guinea.

Cautionary Note 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 in this press release that are not historical facts may be considered forward-looking statements. Forward-looking statements are often identified by terms such as “may,” “should,” “anticipate,” “expect,” “potentially,” “believe,” “intend,” or deny these terms and similar expressions. Forward-looking statements in this press release include, but are not limited to: statements and figures relating to operating and financial results; Statements on the prospects of nickel and cobalt in the global electrification of vehicles; Statements relating to the debt repayment of the company’s Ramu joint venture; Statements on the production effects of the Covid-19 pandemic; and statements relating to the company’s business and assets 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, most of which are beyond the control of the company. 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 in the forward-looking statements.

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

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


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