Nickel 28: A Bright Spot in the Battery Metals Market

Nickel 28 Capital Corp. (TSXV: NKL) has recently provided a corporate update, highlighting its strong performance and growth prospects in the battery metals market. The company's 8.56% joint-venture interest in the Ramu Nickel-Cobalt Operation in Papua New Guinea continues to be a significant driver of its financial performance and growth.



In the third quarter of 2024, the Ramu operation generated a share of operating profit of $3.7 million for Nickel 28. Additionally, the company received a cash distribution of $4.0 million and a repayment of $7.5 million of construction debt from Ramu's H1 2024 operations, totaling $11.5 million in distributions. This cash distribution and debt repayment contributed to Nickel 28's quarter-end cash balance of US$9.3 million.

The Ramu operation's strong performance is further highlighted by its production of 6,880 tonnes of contained nickel and 634 tonnes of contained cobalt in mixed hydroxide precipitate (MHP) during the third calendar quarter. Sales of 8,685 tonnes of contained nickel and 798 tonnes of contained cobalt in MHP during the same period indicate the operation's ability to generate revenue and cash flow.

Nickel 28's interest in Ramu also provides growth prospects through potential increases in ore throughput, following the completion of capital improvement projects during the quarter. Although a mechanical failure in one of the acid plants temporarily reduced production capacity, the company anticipates that Ramu will operate at full ore throughput capacity once the second acid plant is fully operational.

Nickel 28's portfolio of nickel and cobalt royalties on development and exploration projects in Canada, Australia, and Papua New Guinea complements its core asset, the Ramu Nickel-Cobalt Operation, by providing diversification, exposure to multiple projects, potential for future growth, and reduced operational risk. The company's 2% Net Smelter Return ("NSR") royalty on the Turnagain Nickel-Cobalt Project in British Columbia, Canada, and the Life-of-Mine 1.75% NSR Royalty on the Dumont Nickel-Cobalt Project in Québec, Canada, contribute to Nickel 28's overall cash flow and growth prospects.

In conclusion, Nickel 28's strong performance and growth prospects in the battery metals market make it an attractive investment opportunity. The company's 8.56% joint-venture interest in the Ramu Nickel-Cobalt Operation, along with its portfolio of nickel and cobalt royalties, positions Nickel 28 well to capitalize on the growing demand for electric vehicles and energy storage solutions. As the market continues to evolve, Nickel 28's exposure to critical battery metals and its strong financial performance make it a bright spot in the battery metals market.