“During the quarter, Ramu continued its strong production results and remained one of the lowest cost nickel mines in the world,” stated Anthony Milewski, the Company’s Chairman. “Ramu sales continue to be slower than expected, however nickel and cobalt prices remain elevated.”
The Company’s principal asset, an 8.56% joint-venture interest in the Ramu Nickel-Cobalt (“Ramu”) integrated operation in Papua New Guinea, had another outstanding quarter. Highlights from Ramu and the Company during the quarter include:
- Strong quarter end cash balance of US$4.6 million, providing ample liquidity for the Company.
- Production of 8,128 tonnes of contained nickel and 695 tonnes of contained cobalt in mixed hydroxide (MHP) during the second calendar quarter, placing Ramu as the number one producer of MHP globally.
- Actual cash costs for the second calendar quarter, net of by-product sales, of US$3.03/lb. of contained nickel.
- Total net and comprehensive income of $3.0 million ($0.03/share) and $0.2 million ($0.00/share) for the three and six months ended July 31, 2022, respectively, largely as a result of lower sales and higher input and labour costs.
On September 11, 2022, Papua New Guinea experienced a 7.6 magnitude earthquake 150km south of Madang. Emergency protocols were initiated at the Ramu Mine and it was determined that no injuries to personnel occurred. MCC has reduced throughput at Ramu’s refinery while specialists are engaged to ensure integrity of all key equipment before returning to full production. It’s expected that Ramu will operate at reduced capacity for at least 2 months.
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 operating 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.
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