Nickel 28 Releases Ramu Q1 2022 Operating Performance
May 09 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 March 31,
2022 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”).
Q1 2022 Ramu Highlights:
- Ramu Q1 2022 production of 8,756 tonnes of contained nickel in
MHP.
- Ramu Q1 2022 production of 830 tonnes of contained cobalt in
MHP.
- Ramu Q1 2022 nickel sales of 3,336 tonnes of contained
nickel.
- LME average nickel price of $11.97/lb. in Q1 2022, a 50%
increase from the same period last year and a 33% increase from Q4
2021.
- Fast Markets average cobalt price of $36.24/lb. in Q1 2022, a
67% increase from the same period last year and a 22% increase from
Q4 2021.
- Actual cash cost, net of by-product credits of $1.48/lb. of
nickel produced as MHP, a cost reduction of 12% from Q1 2021.
“Ramu’s production has rebounded to expected levels in Q1 2022
as PNG and the rest of Asia begin to emerge from the global
pandemic,” stated Nickel 28’s Chairman, Anthony Milewski. “Despite
significant increases in raw materials and input costs, Ramu was
able to improve its cash costs for the quarter because of
significantly improved by-product credits, mainly cobalt credits.
We expect that Ramu’s full year costs and production will remain
within guidance being 32,000 to 33,000 tonnes of contained Nickel
in MHP and cash costs below $2.00/lb. of Nickel provided by-product
credits remain consistent. Sales in the first quarter were impacted
by increased restrictions in our main export destination as a
result of the global pandemic and the 2022 Winter Olympics. We
expect this to normalize in Q2 2022,” 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
2022
Q1
Q1
Q1
Ore Processed (dry kt)
920
952
953
MHP Produced (dry tonne)
21,177
22,845
22,229
Contained Nickel in MHP (tonne)
8,635
8,805
8,756
Contained Cobalt in MHP (tonne)
720
813
830
Nickel Capacity Utilization (% of design
1)
106%
108%
107%
MHP Shipped (dry tonne)
15,121
22,648
8,436
Sales of Contained Nickel (tonne)
6,108
8,746
3,336
Sales of Contained Cobalt (tonne)
522
787
305
Cash Cost Actual 2
$2.05
$1.68
$1.48
Note (1) Ramu design capacity of 32,600 tonnes per year of
nickel contained in MHP Note (2) actual cost per pound of nickel
contained in MHP net of by-product credits
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 annual 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 related to the production and sales impacts of
the Covid-19 pandemic and 2022 Winter Olympics; 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/20220509005455/en/
Investor Contact:
Nickel 28 Investor Relations Tel: 647.846.7765
Email: info@nickel28.com
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