Nickel 28 Releases Ramu Q1 2023 Operating Performance and Provides Update ON Shareholder Engagement
NEWS RELEASE TSX VENTURE: NKL
FSE: 3JC0
NICKEL 28 RELEASES RAMU Q1 2023 OPERATING PERFORMANCE
AND PROVIDES UPDATE ON SHAREHOLDER ENGAGEMENT
• Nickel 28 confirms receipt of largest ever cash distribution from Ramu joint venture of US$9.7
million.
• Concurrent with cash distribution, Nickel 28's Ramu construction debt reduced by US$18.1 million
leaving a balance of approximately US$55.8 million as of January 2, 2023.
• Nickel 28 provides update on shareholder engagement efforts.
TORONTO, ONTARIO, May 3, 2023) – 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, 2023 for th e Company’s largest asset, the Ramu Nickel -Cobalt integrated
operation in Papua New Guinea (“Ramu”), as well as an update on its shareholder engagement
efforts.
Q1 2023 Ramu Highlights
Nickel 28 currently holds an 8.56% joint -venture interest in Ramu , which is operated by
Metallurgical Corporation of China. In respect of the quarter ending March 31, 2023 (“Q1 2023”),
the Company is pleased to update as follows:
• Ramu Q1 2023 production of 9,016 tonnes of contained nickel in Mixed Hydroxide
Precipitate (“MHP”), compared to 8,756 tonnes in the same period last year.
• Ramu Q1 2023 production of 798 tonnes of contained cobalt in MHP, compared to 830
tonnes in the same period last year.
• Ramu Q1 2023 nickel sales of 7,914 tonnes of contained nickel, compared to 3,336
tonnes in the same period last year.
• LME average nickel price of US$11.83/lb. in Q1 2023, essentially unchanged from the
same period last year and a 3% increase from Q4 2022.
• Fast Markets average cobalt price of US$16.98/lb. in Q1 2023, representing a 53%
decrease from the same period last year and 26% decrease from Q4 2022.
• Actual cash cost, net of by -product credits of $3.12/lb. of nickel produced as MHP,
compared to $1.48/lb. in the same period last year.
• On April 24, 2023, the Company received its largest ever cash dis tribution of
approximately US$9.7 million from the Ramu joint venture.
• Concurrent with the cash distribution, Nickel 28’s Ramu construction debt was reduced
by US$18.1 million, leaving a balance of approximately US$55.8 million as of January
2, 2023.
“Ramu delivered strong operational and financial results again with operations performing at
111% of nameplate capacity in the first quarter of this year ,” stated Nickel 28’s Executive
Chairman, Anthony Milewski. “In addition, we are seeing reductions in input and operational costs
which resulted in improved production costs compared to the last quarter. We expect that Ramu’s
full year costs and production will remain within guidance being 33,000 tonnes of contained Ni in
MHP and cash costs in the range of $2.50-$3.50/lb. of Ni. The first quarter saw sales improve from
traditionally sluggish first quarters and we anticipate sales to remain strong for the balance of 2023
as EV production increases globally,” continued Mr. Milewski.
Ramu’s unaudited operatin g performance for the period is presented below (along with a
comparison to prior years).
2021 2022 2023
Q1 Q1 Q1
Ore Processed (dry kt) 952 953 928
MHP Produced (dry tonne) 22,845 22,229 22,623
Contained Nickel (tonne) 8,805 8,756 9,016
Contained Cobalt (tonne) 813 830 798
Nickel Capacity Utilization (% of design1) 108% 107% 111%
MHP Shipped (dry tonne) 22,648 8,436 19,663
Contained Nickel (tonne) 8,746 3,336 7,914
Contained Cobalt (tonne) 787 305 673
Cash Cost Actual2 $1.68 $1.48 $3.12
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 presente d 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.
Shareholder Engagement Update
Consistent with Nickel 28’s commitment to shareholder engagement, Nickel 28 has had
discussions with several of the significant shareholders of the Company on governance and
compensation related matters. These shareholders do not include Pelham Investment Partners LP,
which has not engaged with the board of directors (the “ Board”) or senior management of the
Company since the launch of its unsolicited and now expired “mini-tender” offer.
Having publicly articulated Nickel 28’s vision for the future, and considered the feedback provided
by shareholders, the Board and management have determined not to seek renewal of the
Company’s existing equity-based compensation plan at the forthcoming annual and special
meeting of shareholders of the Company to be held on June 12, 2023. Given the significant equity
ownership of the Board and management , Nickel 28 continues to believe that there is strong
alignment between shareh olders and the Board and management. Nickel 28 believes that its
decision demonstrates a continued commitment to acting in the best interests of all of Nickel 28’s
shareholders.
The long-term, s ignificant shareholders management has spoken with support Nickel 28 and
appreciate the complexity of managing the Company’s active joint -venture interest in one of the
world’s largest operating nickel-cobalt mines, the Ramu project, as well as managing a portfolio
of royalty interests in some of the world's largest undeveloped nickel projects. These shareholders
recognize that the Ramu project joint venture is not a passive stream or royalty interest , but an
actively managed relationship with the Company’s partners.
Management of Nickel 28’s Ramu joint venture interest and royalty portfolio requires significant
experience in mining, operations, commodity trading and sales, geology and mergers and
acquisitions, as well as experience managing local relationships, many of which have been forged
over decades with Nickel 28’s partners in Papua New Guinea and the People’s Republic of China.
For example, senior members of management are currently in Turkey engaged in collaboration
with representatives of the Ramu project joint venture on marketing efforts, given that the sale of
the MHP product produced by Ramu is not a simple matter of selling refined metal over a metals
exchange, and noting that it requires considerable time and effort to develop and maintain sales
relationships. Other members of management are in Singapore and a third team member in Papua
New Guinea next week for joint venture related matters . In addition , Nickel 28’s Executive
Chairman, Mr. Anthony Milewski, will be participating in Canaccord Genuity’s Global Metals
and Mining Conference next week from May 10 -12th. Shareholders interested in meeting with
Mr. Milewski, or a member of the Nickel 28 team, are encouraged to contact [email protected].
Shareholders can be confident that t he Nickel 28 team will continue to leverage its expertise and
experience in order to deliver on the Company’s vision and business plan.
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 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 simil ar 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 with respect to the global market for electric vehicles;
statements related to the repayment of the Company’s Ramu operating debt (including the timing
thereof) and the timing of repayments and payments under the Ramu Nickel project joint venture
agreement by the operator; statements related to the Co mpany’s future use of excess cash flow
from the Ramu Nickel project (and the receipt and timing thereof); and statements with respect to
the business and assets of the Company and its strategy going forward. Readers are cautioned not
to place undue relianc e 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.
Investor Contact:
Justin Cochrane, President
Tel: + 1 289 314 4766
Email: [email protected]