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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 urai58on Jan 22, 2023 6:12am
166 Views
Post# 35238265

RE:The solution to your disscussions /the whole riddle

RE:The solution to your disscussions /the whole riddle
Thank you@Suppe11 - you have explained this very well and I have understood your explanation very well. And it is clear to me: supply and demand for the specific "Ramu-MHP product" determines the price - and this price develops dynamically. Therefore also in the calculations - related to the future - the variable "Payability".
 
What is simply very difficult to understand are the assumptions made by NKL: in the June 2022 presentation 92% for Ni/Co and in the January 2023 presentation 75% Ni and 65% Co. This £reduction in payability is precisely what accounts for the significantly lower potential cash flow in favor of NKL - and not the OPEX or the slightly lower nickel price.
 
I remain convinced of the business case of Nickel 28 in Ramu and of the investment case in Nickel 28. I even bought in at 0.9 CAD. 
 
But very problematic is on the one hand such a massive misjudgement by the people in charge and on the other hand the mutual "bartering" of many millions of shares - for zero performance. And so that the dilution for the "ordinary" shareholders is not too big - one buys back shares on the market and burns so many millions $$$.
 
So I strongly support, the planned use of FCF in 2023 to 2024 to "accelerate" the repayment of CAPEX-Debt. (Answer from @Anthony Milewski in other Board.)
 
urai58 
 
 
Translated with www.DeepL.com/Translator (free version)
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