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Nickel 28 Capital Corp V.NKL

Alternate Symbol(s):  CONXF

Nickel 28 Capital Corp. is a Canada-based nickel-cobalt producer through its 8.56% joint-venture interest in the Ramu Nickel-Cobalt Operation located in Papua New Guinea. In addition, the Company manages a portfolio of nickel and cobalt royalties on projects in Canada, Australia and Papua New Guinea, including a 1.75% net smelter return (NSR) royalty on the fully permitted Dumont nickel project in Quebec and a 2.0% NSR royalty on the Turnagain nickel project in British Columbia. The Company is focused on building its portfolio of battery metals investments, including streams, royalties and other direct interests in producing mines, development projects or exploration properties. The Company's royalties include Dumont Nickel-Cobalt Royalty, Turnagain Nickel-Cobalt Royalty, Flemington Cobalt-Scandium-Nickel Royalty and Nyngan Cobalt-Scandium-Nickel Royalty.


TSXV:NKL - Post by User

Post by Suppe11on Jan 21, 2023 2:18pm
336 Views
Post# 35237546

The solution to your disscussions /the whole riddle

The solution to your disscussions /the whole riddleI told you all here, that Ramu doesn't sell Nickel, but MHP and exports it's MHP to refineries in China. The penalty/spread to the LME nickel price differs (20-30%), but that's not the main problem. The problems are

1) bottlenecks regarding the refineries = if they're running at 100%, it can be a demand problem (=refinery doesn't need more material), which was one of the problems for Ramu last year and their stockpile building.

2) Obviously with the elevated price of nickel, there's a margin problem = refineries running at a loss, unless the MHP (=bigger spread/penalty) or nickel prices come down -> lower demand...Ramu can't sale their MHP.

https://www.fastmarkets.com/insights/weakening-demand-adds-pressure-to-nickel-market
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