Nickel 28 Announces Filing of Annual and Interim Financial Statements
Nickel 28 Announces Filing of Annual and Interim Financial
Statements
Toronto, Ontario
--
(Newsfile Corp.
-
July 2, 2024)
-
Nickel 28 Capital Corp.
(TSXV:
NKL) (FSE:
3JC0)
("
Nickel 28
" or
the "
Company
")
today announced that it filed on June 30, 2024, its annual audited financial statements for the
financial year ended January 31, 2024 ("
2023 financial year
") and its unaudited interim financial statements for
the quarter ended April 30, 2024 ("
first quarter of 2024
").
"We are pleased to announce the filing of the annual financial statements for our 2023 financial year and the
interim financial statements for the first quarter of 2024," said Christopher Wallace, Chief Executive Officer of
Nickel 28. "The 2023 financial y
ear represented another strong performance from the Company's joint venture
interest in the Ramu Nickel
-
Cobalt Project. As a result of this strong performance, the Company repaid US$14.4
million of its construction debt, which leaves a remaining constructi
on debt balance of US$44.1 million as of the
end of the financial year. This strong performance continued into the first quarter of 2024 with improving
production costs, stable operating margins and the receipt of a cash distribution for the second half of
the 2023
financial year of US$3.0 million."
Full Year Highlights
Key financial and operating highlights from the Company's financial year ended January 31, 2024, and the
operations of the Company's principal asset, an 8.56% joint
-
venture interest in the Ramu Nickel
-
Cobalt integrated
operation in Papua New Guinea ("
Ramu
"), included the following:
Production of 33,604tonnes of contained nickel and 3,072tonnes of contained cobalt in mixed hydroxide
precipitate ("
MHP
"), making Ramu a significant producer of MHP globally.
Sales of 34,122tonnes of contained nickel and 3,086tonnes of contained cobalt in MHP.
Average cash costs, net of by
-
product sales, of US$3.26/lb. of contained nickel.
Total Ramu project revenue for the year of approximately US$644 million.
Total net and comprehensive loss of US$6.2 million (US$0.07/share).
Financial year end cash balance of US$7.8 million.
Full year debt repayment of US$14.4 million, with a remaining construction debt balance of US$44.1
million as at January 31, 2024.
Quarterly Highlights
Key financial and operating highlights from the Company's first financial quarter ended April 30, 2024, and the
operations of the Ramu project during the period included the following:
Production of 8,282 tonnes of contained nickel and 767 tonnes of contained cobalt in MHP.
Sales of 8,864 tonnes of contained nickel and 822 tonnes of contained cobalt in MHP.
Average cash costs, net of by
-
product sales, of US$3.00/lb. of contained nickel.
Total net and comprehensive loss of US$0.9 million (US$0.01/share).
Financial quarter end cash balance of US$9.7 million.
Receipt by the Company of a cash distribution of approximately US$3.0 from Ramu for its distributable
share of the mine's operating surpluses for the second half of calendar 2023; and
Total non
-
recourse construction debt of US$44.7 million as at April 30, 2024.
Appointment of Chief Executive Officer and Chief Financial Officer
The Company is also pleased to announce that the Board has formally resolved to appoint Mr. Christopher
Wallace, the current Interim President & Chief Executive Officer, as the full
-
time President & Chief Executive
Officer of the Company.
The Board has also formally resolved to appoint Mr. Craig Lennon, the current Interim Chief Financial Officer and
Head of Asia Pacific, as the full
-
time Chief Financial Officer & Corporate Secretary of the Company.
Status of Management Cease Trade Order
The Company previously announced that it had been granted a management cease trade order ("
MCTO
") by the
Ontario Securities Commission, as principal regulator, in response to the Company's voluntary application on the
basis that the Company's audited annual financial statements, management's discussion and analysis, and
related certifications, all f
or the year ended January 31, 2024 (collectively, the "
Annual Filings
") would not be filed
by the applicable filing deadline of May 30, 2024, as a result of the Company requiring additional time to do the
work necessary for preparation and completion of the Annual Filings necessitated by the previously announced
changes in
management. The Company announced the issuance of the MCTO on June 3, 2024, and provided
further status updates on June 13, 2024 and June 27, 2024, respectively. The MCTO prohibits the Chief Executive
Officer, Chief Financial Officer and former Chief Execu
tive Officer from all trading in securities of the Company
until such time as the Annual Filings have been filed by the Company and the MCTO has been lifted. The MCTO
does not affect the ability of other shareholders of the Company to trade in securities o
f the Company.
As a result of the making of the Annual Filings by the Company on June 30, 2024 under its profile on SEDAR+
at
www.sedarplus.ca
, and since the terms of the MCTO provided that it would remain in effect until two full
business days following the receipt by the Ontario Securities Commission ("
OSC
") of all filings the Company is
required to make under Ontario securities law or further order of the Director of the OSC, the Company anticipates
that the MCTO will be formally revoked by securities regulators in accordance with National Policy 12
-
203
-
Cease
Trade Orders for Continuous Disclosure Defaults
on or about July 4, 2024.
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 proje
cts 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 s
tatements 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 simil
ar expressions. Forward
-
looking
statements in this news release include, but are not limited to forward
-
looking information relating to: statements
and figures with respect to the operating performance of Ramu; statements with respect to production, sales
and
cash flow from Ramu and matters relating thereto; statements with respect to the business and assets of the
Company; and the timing of revocation of the MCTO. Forward
-
looking statements involve known and unknown
risks and uncertainties, most of which a
re 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. T
he 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 a
pproved or disapproved of the contents of this news release.
Investor Relations Contact Information
:
Nickel 28 Investor Relations
Attn: Brett A. Richards, Director
Tel: +1 905 449 1500
Email:
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/214993