Nickel 28 Releases Ramu Q4 and Full Year 2020 Operating Performance
February 01 2022 - 7:00AM
Business Wire
Nickel 28 Capital Corp. (“Nickel 28” or the
“Company”) (TSXV: NKL) (FSE: 3JC0) is pleased
to provide operational results for the quarter ending December 31,
2021 and for the full year of 2021 for the Company’s largest asset,
being the Ramu Nickel-Cobalt (“Ramu”) integrated operation
in Papua New Guinea. Nickel 28 currently holds an 8.56%
joint-venture interest in Ramu which is operated by the
Metallurgical Corporation of China (“MCC”).
Full Year and Q4 2021 Ramu Highlights:
- Ramu Q4 2021 production of 6,368 tonnes and full year
production of 31,594 tonnes of contained nickel in MHP.
- Ramu Q4 2021 production of 579 tonnes and full year production
of 2,953 tonnes of contained cobalt in MHP.
- Ramu Q4 2021 nickel sales of 4,987 tonnes and full year sales
of 32,793 tonnes of contained nickel.
- Ramu Q4 2021 cobalt sales of 478 tonnes and full year sales of
3,035 tonnes of contained cobalt.
- LME average nickel price of US$8.99/lb. in Q4 2021, a 24%
increase from the same period last year. The full year LME nickel
price averaged US$ 8.39/lb. an improvement of 34% over the 2020
average of US$6.25/lb.
- Fast Markets average cobalt price of US$29.79/lb. in Q4 2021, a
89% increase from the same period last year. Full year cobalt
prices averaged US$24.34/lb. compared to US$15.58/lb. for 2020
representing a increase of 56%.
- Full year 2021 cash costs are expected to be consistent with
prior reporting periods and should fall in the range of $1.80 to
$2.20/lb. of nickel produced net of byproduct in MHP.
“Despite 2021 being a challenging year as global industry
continued to be impacted by the pandemic, Ramu delivered strong
results despite incurring an unplanned outage in Q4 due to the
pandemic” stated Nickel 28’s Chairman, Anthony Milewski. “In
comparison to the year prior, Ramu’s operational performance was
essentially unchanged producing slightly under 32,000 tonnes of
contained nickel and almost 3,000 tonnes of contained cobalt in
MHP. I would like to congratulate our partner MCC, for navigating
the operation through extremely challenging circumstances which saw
much of our workforce remain at site for prolonged rotations as a
result of travel restrictions both in PNG and their respective home
countries. The fact that our operations continued under such
conditions and upholding the highest safety and environmental
standards is a testament to MCC’s capability as a premier operator”
continued Mr. Milewski.
Ramu’s operating performance for the period are presented below
along with comparison to prior years, noting that these figures are
unaudited.
2020
2021
Q4
Full Year
Q4
Full Year
Ore Processed (dry kt)
884
3,572
670
3,375
MHP Produced (dry tonne)
21,435
84,602
16,287
81,577
Contained Nickel (tonne)
8,373
33,659
6,368
31,594
Contained Cobalt (tonne)
745
2,941
579
2,953
Nickel Capacity Utilization (% of
design1)
103%
103%
78%
97%
MHP Shipped (dry tonne)
24,397
75,071
12,994
84,107
Contained Nickel (tonne)
9,436
29,683
4,987
32,793
Contained Cobalt (tonne)
850
2,600
478
3,035
Note (1) Ramu design capacity of 32,600
tonne/year contained Ni
A. These figures have not been audited and are subject to
change. As the company has not yet finished its year-end annual
close procedures, and the audit of its 2021 financial statements is
not complete, the anticipated financial information presented in
this press release is preliminary, subject to final year-end
closing adjustments and may change materially. The information
presented above has not been audited by the company's independent
accountants, should not be considered a substitute for audited
financial statements and should not be regarded as a representation
by the company as to the actual financial results.
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 of the Ramu
project; 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 operating debt (and
the timing thereof); statements related to the Company’s
attributable cash flow and future cash flow receivable by the
Company (and the receipt and timing thereof); statements related to
the production impacts of the Covid-19 pandemic; statements related
to future evaluation of mineral resource and reserve estimates by
representatives of MCC and the Company; 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.
This news release also contains references to estimates of
mineral reserves and mineral resources. The estimation of mineral
reserves and mineral resources is inherently uncertain and involves
subjective judgments about many relevant factors. Mineral resources
that are not mineral reserves do not have demonstrated economic
viability. The accuracy of any such estimates is a function of the
quantity and quality of available data, and of the assumptions made
and judgments used in engineering and geological interpretation,
which may prove to be unreliable and depend, to a certain extent,
upon the analysis of drilling results and statistical inferences
that may ultimately prove to be inaccurate. Mineral reserve and
mineral resource estimates may have to be re-estimated based on,
among other things: (i) fluctuations in nickel, cobalt or other
mineral prices; (ii) results of drilling; (iii) results of
metallurgical testing and other studies; (iv) changes to proposed
mining operations, including dilution; (v) the evaluation of mine
plans subsequent to the date of any estimates; and (vi) the
possible failure to receive or maintain required permits, approvals
and licences.
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/20220201005515/en/
Investor Contact:
Nickel 28 Investor Relations Tel: 647.846.7765
Email: info@nickel28.com
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