TORONTO – (BUSINESS WIRE) – Nickel 28 Capital Corp. (“Nikel 28” or “the Company”) (TSXV: NKL) (FSE: 3JC0) announced its financial results as at 31 July 2022.
“Ramu maintained its strong operating performance this quarter and remains one of the lowest cost nickel mines in the world,” said Anthony Milewski, chairman of the board. “Ramu sales continue to underperform, but nickel and cobalt prices remain strong.”
Another outstanding quarter for the company’s main asset, its 8.56% joint venture interest in the Ramu Nickel-Cobalt (“Ramu”) consolidated business in Papua New Guinea. Highlights for Ramu and company during the quarter include:
- Produced 8,128 tons of nickel-containing and 695 tons of cobalt-containing mixed hydroxide (MHP) in the second quarter, making Ramu the world’s largest producer of MHP.
- Actual cash cost (excluding by-product sales) for the second quarter was $3.03/lb. Contains nickel.
- Total net income and consolidated earnings for the three and six months ended July 31, 2022 were $3 million ($0.03 per share) and $0.2 million ($0.00 per share) per share) respectively, mainly due to lower sales and higher production and labor costs.
On September 11, 2022, a magnitude 7.6 earthquake struck Papua New Guinea, 150 kilometers south of Madang. At the Ramu mine, emergency protocols were activated and it was determined that no one was hurt. MCC reduced production at the Ramu refinery by hiring specialists to ensure the integrity of all critical equipment before returning to full production. Ramu is expected to run at reduced power for at least 2 months.
Nickel 28 Capital Corp. is a nickel-cobalt producer through its 8.56 percent joint venture interest in Ramu’s productive, durable and premium nickel-cobalt business in Papua New Guinea. Ramu provides Nickel 28 with significant production of nickel and cobalt, giving our shareholders direct access to two metals critical to the adoption of electric vehicles. In addition, Nickel 28 manages a portfolio of 13 nickel and cobalt mining licenses from development and exploration projects in Canada, Australia and Papua New Guinea.
This press release contains certain information that constitutes “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities laws. Any statements contained in this press release that are not statements of historical fact may be considered forward-looking statements. Forward-looking statements are often referred to by terms such as “may”, “should”, “anticipate”, “anticipate”, “potentially”, “believe”, “intend” or negative and similar expressions of these terms. Forward-looking statements in this press release include, but are not limited to: statements and data about operating and financial results, statements about the prospects for the use of nickel and cobalt in global automotive electrification, statements about the repayment of the company’s operating debt to Ramu; and Covid-19 Statements on the impact of the pandemic on production Statements on 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, many of which are beyond the Company’s control. If one or more of the risks or uncertainties underlying these forward-looking statements materialize, or if the assumptions on which the forward-looking statements are based prove incorrect, actual results, results or achievements may differ from those expressed or implied by the forward-looking statements, material differences exist.
The forward-looking statements contained herein are made as of the date of this press release, and the Company undertakes no obligation to update or revise these statements to reflect new events or circumstances, except as required by applicable securities laws. Forward-looking statements contained in this press release are expressly set forth in this cautionary statement.
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