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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 microcaptton May 10, 2023 4:46pm
97 Views
Post# 35441714

RE:RE:RE:RE:Where is the negotiation?

RE:RE:RE:RE:Where is the negotiation?To be clear I have no issues owning passive assets.  I have a problem paying a management team too much money to manage them (collect a few checks and make a few reglatory filings).  With that said what has happend in the past is in the past now.  What I care about now is how value is going to get created moving forward.  I think it starts with "fair compensation" which may finally come based on management recent comments.  However, I dont for one minute belive its b/c management felt it was the right thing to do - its b/c they had to.  I also would like to see better governance and it starts with reorganizing the board of directors.  All they have to do is improve the "optics" so you get more investor interest and upward pressure on share price.  

To answer your question, I dont plan to sell my shares at this level.  I also dont expect a dividend until the second half of 2024 so there is a lot time between now and then.  They do have some interesting royalty exposure but years and years from being built so dont expect royalty income anytime soon. I mean managemetn has no clue if and when Waterton is going to do something with Dumont.  Turnagain is a long way off as well.  

In terms of management and board concerns, our beloved management team said they were going to use excess cash proceeds from Ramu (35%) to accelerate debt repayment which generally made sense to me.  Then all of a sudden they are going to use it to buy back stock b/c the stock is cheap?  Why the sudden change?  The stock has been cheap all along.  They are doing this becuase they see more personal benifit spending NKL's money to push up the share price making it harder for Pelham or other investors to obtain large ownership % and influence teh board/comp/decisions. Why have they not addressed this flip flop?  Paying down the debt increases cash flow net to NKL by 15-20mm. Has this changed now given Pelham owns 15% and are ready to fight ?  So they will go back and say paying down debt is better?  These guys are clowns and only looking out for themselves.  As much as I hate that - I do see a lot of upside in this stock/ assets and I hope some of this comotion leads to unlocking it.  
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