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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 in the 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

Comment by AnthonyMilewskion Dec 31, 2020 12:42pm
152 Views
Post# 32204041

RE:RE:Conic Metals Shareholder Update

RE:RE:Conic Metals Shareholder UpdateWe have had a few questions from retail shareholders (a few of who were formerly Highland Pacific shareholders) on our asset dispositions in 2020 and how they impact the balance sheet.  It is important to note that Conic Metals in not an exploration company.  We do not have the skills nor the desire to explore for minerals using Conic’s balance sheet.  Exploration assets require time and money to maintain – even if you are not actually conducting exploration activities.  In order to rationalize expenses and focus on the company’s core JV, streaming and royalty assets, we disposed of all non-core assets.  In 2020, that included two properties: 1) Star Mountain; 2) Sewa Bay; and 3) Giga Metals equity position (retaining a royalty).  In the case of Star Mountain we received a 1.0% NSR royalty and in the case of Sewa Bay we received a royalty of up to 5.0% GRR on ore sales.  As or maybe more important than the consideration received for the disposition of the non-core exploration assets, was the elimination of approximately US$350,000 of annual burn associated with those assets.  Management believes that a key re-rating milestone for the company is paying down the first tranche of its Ramu JV loan thereby becoming cash flow positive and opening up the potential for a dividend or share buyback.  As we highlighted in our annual letter, at current nickel prices we are on track to repay this first tranche of debt in 2021.  By adding cash and royalties to the balance sheet and further reducing the company’s burn rate from the disposition of non-core exploration assets we can help to ensure no dilution ahead of what we believe will be an important re-rate and milestone.
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