Nickel 28 Releases Ramu Q3 2023 Operating Performance
November 08 2023 - 6:00AM
Business Wire
Nickel 28 Capital Corp. (“Nickel 28” or the
“Company”) (TSXV: NKL) (FSE: 3JC0) is pleased
to provide operational results for the production quarter ending
September 30, 2023 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 Metallurgical Corporation of China
(“MCC”).
Q3 2023 Ramu Highlights:
- Ramu Q3 2023 production of 8,979 tonnes of contained nickel in
mixed hydroxide precipitate (“MHP”), compared to 8,939
tonnes in Q3 2022.
- Ramu Q3 2023 production of 851 tonnes of contained cobalt in
MHP, compared to 759 tonnes in Q3 2022.
- Ramu Q3 2023 nickel sales of 8,832 tonnes of contained nickel,
compared to 13,676 tonnes in Q3 2022. Q3 2023 nickel sales are
inline with historical averages. In Q3 2022, Ramu saw a rebound in
nickel sales after Covid restrictions were lifted following lower
than usual nickel sales in the first half of 2022.
- LME average nickel price of US$9.23/lb. in Q3 2023, a 8%
decrease from the same period last year. The average 2023 YTD LME
nickel price was $10.38/lb., compared to an average LME nickel
price of $11.66/lb. for same period 2022.
- Fast Markets average cobalt price of US$16.58/lb. in Q3 2023, a
37% decrease from the same period last year. The average 2023 YTD
Fast Markets cobalt price was $16.50/lb., compared to an average
Fast Markets cobalt price of $33.35/lb. for same period 2022.
- Actual Q3 2023 cash cost, net of by-product credits, of
$2.77/lb. of nickel produced as MHP, compared to $4.34/lb. in Q3
2022, largely as a result of reduced input commodity prices. 2023
YTD cash costs, net of by-product credits are $3.24/lb. of nickel
produced as MHP.
“Once again Ramu has been able to demonstrate its stable
production and low cost position within the growing MHP production
market,” stated the Company’s CEO Anthony Milewski. “The return to
cash costs below $3.00/lb speaks volumes about Ramu’s ability to
produce cost effectively at a steady rate. The demand for MHP in
Ramu’s largest market, China, remains robust and we anticipate full
year sales to be consistent with prior years,” continued Mr.
Milewski.
Ramu’s unaudited operating performance for the period is
presented below (along with comparison to prior years).
2022
2023
Q3
YTD
Q3
YTD
Ore Processed (dry kt)
886
2,649
960
2,741
MHP Produced (dry tonne)
21,974
64,605
22,529
64,622
Contained Nickel (tonne)
8,939
25,823
8,979
25,237
Contained Cobalt (tonne)
759
2,284
851
2,302
Nickel Capacity Utilization (% of design
1)
110%
106%
110%
105%
MHP Shipped (dry tonne)
34,523
60,343
25,183
67,779
Contained Nickel (tonne)
13,676
23,651
8,832
25,824
Contained Cobalt (tonne)
1,198
2,130
836
2,331
Cash Cost Actual 2
$4.34
$2.96
$2.77
$3.24
Notes:
(1)
Ramu design capacity of 32,600 tonnes/year
of nickel contained in MHP.
(2)
Actual cost per pound of nickel contained
in MHP net of by-product credits.
(3)
The foregoing production figures have not
been audited and are subject to change. As the Company has not yet
finished any audit or review procedures in respect of the fiscal
quarter, the financial information presented in this press release
is preliminary, subject to adjustment and may change materially.
The information presented above has not been reviewed or audited by
the Company's auditor, should not be considered a substitute for
reviewed or 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 10
nickel and cobalt royalties on development and exploration projects
in Canada, Australia and Papua New Guinea.
Cautionary Statements 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 (including cash costs of operations and sales of MHP);
statements with respect to the state of the global market for MHP;
statements with respect to the future prospects for nickel and
cobalt prices 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/20231108984380/en/
Investor: Justin Cochrane, President Tel:
289.314.4766 Email: info@nickel28.com
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