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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 ICNickon Jun 01, 2024 7:56pm
114 Views
Post# 36067885

RE:RE:RE:Based on update Ramu resources

RE:RE:RE:Based on update Ramu resourcesAssuming:
1- Debt paid by the end of 2025 (as you mention)
2- 33,000 T/year nickel (based on prior years).
3- The added mining share between 8.56% and 11.4% pays for taxes (as you are assuming).
4- 3,068 T/year of cobalt at a gross margins of $10 US/lb, and at 8.56% will generate $5.8 M US per year and that should pay for Opex (my assumption).
5- Net margins per lb of nickel = $7.00 US (based on Q1-24).
6- after tax profits = 33,000 x 8.56% x 2,200 lbs/T x $7.00 US (my assumption) = $43.5 M US or $59.3 M CAD (at current c-rate).
7- @ 92M share = $0.65 CAD/share
8- assuming there will be 20 years of mining left at the end of 2025, the net value of the mine could be worth $1.2 Billion CAD at the end of 2025 or $12.90 per share
9- Being a finite resource the share price should be discounted after every year of operation.
10- these assumptions are all optimistic, however it does not include any other potential revenues from Dumont in Qubec, Nyngan in Australia and Turnagain (check Giga Metal) in British Columbia.
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