RE:RE:Nickel 28 Files Fiscal Q3 Financial StatementsI think the debt repayment will take longer than we all hoped b/c of Ni price weakness. Realistically I think we are looking at the end of 2025 unless Ni prices improve. With that said I think we should be seeing the light at the end of the tunnel here. N 28 has 49mm of total debt as of Oct 31, 23. Net debt closer to 39mm with cash on hand. They are estimating 11mm will be paid in the next 12 months. I am hoping that’s a sandbag number and closer to the upcoming payment they should be receiving in January 24. Conservatively net debt should be under $30mm by YE 24.
In terms of what they will do with cash on hand. I have heard mixed messages and people have different views on buybacks (the renewed their NCIB) down at these depressed levels or repaying debt early. I can see them sitting on the cash and monitoring the situation given repaying debt early right now is a wash - they should be earning 5% on their cash versus paying down debt at a cost of 5%