Nickel 28 Files Q3 2021 Financial Statements
November 30 2021 - 7:00AM
Business Wire
Repayment of Operating Debt; Initial Cash
Distribution from Ramu; Strong EPS
Nickel 28 Capital Corp. (“Nickel 28” or the
“Company”) (TSXV: NKL) (FSE: 3JC0) has
released its results for the three and nine-months ended September
30, 2021.
“Following a strong H1 2021 performance from Ramu, the Company
reached a significant milestone and repaid the first of two
non-recourse debt tranches, which triggered a US$3.2 million cash
distribution. For this event, we would like to thank our partners
at Ramu, MCC, for their exceptional stewardship and continuing to
deliver outstanding financial and production results from Ramu,”
stated Anthony Milewski, chairman of the board.
Q3 2021 Highlights
The Company’s principal asset, an 8.56% joint-venture interest
in the Ramu Nickel-Cobalt (“Ramu”) integrated operation in
Papua New Guinea, continued to have another strong quarter in terms
of production, sales and cash flow. Highlights from Ramu during the
quarter include:
- Repayment of the Company’s operating debt from Ramu’s H1 2021
operating results, the first of two debt tranches, which triggered
a US$3.2 million cash distribution to the Company.
- Average cash costs for the quarter, net of by-product credits,
of US$1.55/lb. of contained nickel, while the corresponding nickel
price increased to US$8.67/lb for the quarter. This was the highest
quarterly margin in the Company’s history as a result of continued
strong commodity prices and high payability factors.
- Project revenue in Q3 2021 of over US$180 million from
quarterly sales of 8,085 tonnes of contained nickel and 766 tonnes
of contained cobalt in mixed hydroxide product (MHP).
- Quarterly production of 8,649 tonnes of contained nickel and
841 tonnes of contained cobalt in MHP, placing Ramu as the number
one producer of MHP globally.
Nickel 28 Highlights:
- Earnings per share of US$0.07 and US$0.19 for the three and
nine-months ended September 30, 2021, respectively.
- Following repayment of the Company’s operating debt, the
non-recourse joint-venture debt as of September 30, 2021, consists
of US$79.0 million of construction debt. This compares to total
joint-venture debt on December 31, 2020, of US$107.1 million.
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 13
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 and figures with
respect to the operational and financial results; statements with
respect to the prospects of nickel and cobalt in the global
electrification of vehicles; statements related to the repayment of
the Company’s Ramu joint-venture debt; statements related to the
production impacts of the Covid-19 pandemic; and statements with
respect to the business and assets of the Company and its strategy
going forward. 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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version on businesswire.com: https://www.businesswire.com/news/home/20211130005542/en/
Investor Contact:
Nickel 28 Investor Relations Tel: 647.846.7765
Email: info@nickel28.com
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