Nickel 28 Capital Corp V.NKL

Full repayment of CAPEX Debt likely by Q1 2024

[urai58]

Let's do a small virtual calculation regarding potential full repayment of the CAPEX Debt with the following parameters (Q1 2022 basis, performance data rounded up, CC rounded up):

 

- Billing per semester (1.1./1.7.)

- $76.5m Debt

- 5.05% interest p.a.

- 32kt nickel production

- $12/lb nickel price

- $2/lb Ni Cash Costs

 

This results in a debt repayment potential of USD 19.5m per semester

(16kt x 2205 x 10 x 8.56% x 65%)

 

Each including interest minus 19.5m USD

As of 1.7. 2022: 59m

As of 1/1/2023: 41m

As of July 1st, 2023: 22.5m

As of 1/1/2024: 3.5m

 

CAPEX Debt fully repaid as of February 2024.

 

Then there are the following substantial changes regarding the allocation of FCF in favor of Nickel 28:

- Share of Ramu increases from 8.56% to 11.3

- Proportion of FCF increases from 35% to 100%.

- Billing monthly

 

urai58

[Talchior]

Thanks for the exercise. I think you have forgotten the cobalt part : 3,2 t production by year of. Cobalt $30/lb cobalt (current price is higher) 2$/lb cost (1,6t * 2205 * 28 * 8,56% * 65%) = 5,5 Mo by semester As of 1.7. 2022: 53,5m As of 1/1/2023: 30m As of July 1st, 2023: 6m CAPEX Debt fully repaid as of October 2023 (if we consider quarterly income).

[urai58]

Thanks for your feedback @Talchior. No, I didn't "forget" cobalt. Ramu Cash costs are shown net of by-product (Cobalt). This means that the revenue from the cobalt is deducted from the cash cost of nickel (primary product) according to extract NR of May 9, 2022 : Actual cash cost, net of by-product credits of $1.48/lb. of nickel produced as MHP, a cost reduction of 12% from Q1

[Talchior]

my apologize! Thanks for the clarification, I totally missed this point from the beginning! I fear that not being fluent in English is not always helping to understand the full detail.