Nickel 28 Capital Corp V.NKL

13$/lb

[Talchior]

the price of Nickel is increasing again. Also the stock, if LME is still right, almost less then 50.000 tons.

[Michiel]

goldman sachs said the price of Nickel would go down. Again, the proof that you always has to do the opposite of what analysts say

[Nergy]

We're @$13 again and the valuation is a joke looking 18 months ahead and they can plan for dividend @ 1CAD/year going forward.

[Michiel]

You are right Nergy. Seems the market does not believe this story. Why? Is it to good to be true???

[Talchior]

With more than 90 millions of shares and less 70 millions of expected income, I think a sweet dream. But I like this one.  What could be a good dividend? 20 cents? 

[ICNick]

I agre that $1 is not possible at this stage. However, with the debt paid off, 11.3% is NKL share. 33,000 metric tons x 11.3% = 3,729 tons or 8.2 millions pounds of nickel alone. Assuming at that time $13 /lb with a cost of $5, it leaves $8 net or $65.6 million ( that is beside cobalt). 20 cents in dividends is $18 M. There is then around $47m left. Questions: 1- what should they do with the rest

[Talchior]

With the residual cash, they can increase the % in ramu, they have agreement to have till 20 or something like this. Why not try to increase the participation in turnagain? Also, they can found more new project but isn't so easy. For the second question, the cash-flow is almost the current valuation. How it could not have an impact? Do I remember correctly the life of ramu is 30 years

[ICNick]

Yes it is 30 years. I do not know how many years are left

[ICNick]

Regarding question 2, many feel the stock in undervalued. Once the debt is paid off and dividends start being paid at 20 or 40 cents a share, I believe a synergistic/catalytic effect will be triggered that will propel this stock to high levels not seen so far. Just interested to what people feel it should be in this case. 

[Michiel]

That s why they already have to start with paying a dividend next year. With the cash they received this year,  they can do it. It would remove the misstrust around this stock.....

[Talchior]

The buyback must be done before the increase of the value and dividend. For the rate, totally agree. If there is a cash of 65 millions during 20 year with 90 million of action, should we not evaluate the rate at 14?

[Michiel]

Lol. Talchior. Then we give a big party. :-) I think you are a little bit to optimistic.....

[ICNick]

Maybe a bit optimistic, however, let's not forget about other investments that could move along within the next few years, i.e. Turnagain with Giga and Mitsubishi agreement, Dumont which is shovel ready and one of the top five potential nickel mine in the world, and also others in Australia.  Decisions to start a nickel mine take a while but the EV movement is here to stay and develop

[Michiel]

1/ first they have to pay a nice dividend to their shareholders every year. this just has to happen. 2/ reduce the nummer of outstanding shares through a buyback program 3/ with the rest of the money they have to invest in Nickel- or EV-related companies. these in turn can bring cash to Nickel28 in the form of dividends. If the Ramu mine one day stops to exist, they will not be without income.

[Michiel]

we no longer have to guess at how much % of cash will be paid out as dividends. Anthony has made it clear in his letter to the shareholders: all cash will be paid out. logical when you know that the management owns masses of shares. but we as a small shareholder also benefit from this.