Nickel 28 Capital Corp V.NKL

Nickel 28 Confirmation of Largest Ever Ramu Cash Distr.

[Betteryear2]

April 19, 2023 07:00 AM Eastern Daylight Time

TORONTO--(BUSINESS WIRE)--Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) is pleased to announce the pending receipt of its largest ever cash distribution of approximately US$9.7 million from the Ramu joint venture and the proposed resumption of its normal course issuer bid to repurchase its common shares.

Nickel 28 Announces Confirmation of Largest Ever Ramu Cash Distribution and Proposed Resumption of Normal Course Issuer Bid | Business Wire

[urai58]

This renewed planned share buyback is nothing other than that the available cash indirectly goes into the pockets of the directors/officers. Because the system is clear: share buyback, cash is reduced, new shares/RSU/options are generously granted to the directors/officers. These characters have no risk, no responsibility, no decision-making authority - except to give themselves gifts. A dividend

[Michiel]

Correct. I m also disappointed.  But i already decided to sell to Pelham. This stock is waste of time.  Shareholders will never get what they are entitled to.....

[Talchior]

We have to see it at long term. Perhaps they did an analysis and it's more interesting for the future.  Also, they said they do buyback not they will not repay at all. 

[lumpy13]

Unfortunately, mgmt is very self serving.  I wonder what the share price will fall to after Pelham's offer expires. Given the $9.7m they received, they should 1) pay a 5 cent dividend (around $5m needed); 2) pay down $2-3m of construction debt; 3) keep the remaining for NKL operating expenses, which should be minimal as the have a free ride on Ramu and their other royalties/streams don

[Talchior]

We have to take the view globally.  If they provide a dividend, the price will increase and then more difficult to do a buyback. If you do a buyback, the next dividend will be higher. About the debt repayment, it is more difficult to answer. I think really do a full analysis which decision is the more interesting at mid term. 

[glacier]

On January 30th the stock price was $.97 and Nickel prices were ~$30,000 and management said they would use excess cash to repay construction debt. On April 18th the stock price was $1.17 and Nickel prices were ~$25,000 and management said they will use excess cash to buy back stock. This isn't complicated.  The stock is up ~20% and Nickel prices are down ~15% but now

[Talchior]

I read it again. They never said they will fully use the cash to pay the debt. And they never said that they totally use the cassh to do buy back.  They can do an halve halve. 

[glacier]

"Funds received through the balance of 2023 and into 2024 will be used to accelerate the repayment of the remaining construction debt" There is no ambiguity to this statement.  They will use the cash they receive to pay down debt - full stop. "using Nickel 28’s excess liquidity to buy back common shares at their current trading price is highly accretive to net asset value

[Talchior]

I totally disagree with your interpretation.  If they said " all Funds received through the balance of 2023 and into 2024 will be used to accelerate the repayment of the remaining construction debt", no ambiguity.  Like the one of today. They Never mentioned the will use the full cash to do it. You are badly interpreting the words. For me, it's clearly intellectual

[glacier]

This is a dumb argument and I don't get the sense you're here with an open mind but when people say: Votes will be tallied Dividends will be paid Tests must be completed They implicitly mean all of them and do not need to clarify that point - the same goes for "funds will be used to...".  I have no intent to offend but you are clearly not a native English

[Talchior]

I never said I am a native. I try to be more factual as possible based my view on what I know and not why think to know (videmment, cette vue peut tre biaise par une mconnaissance partielle des subtilits linguistiques). However, as I mentioned earlier, my interpretation seems to be correct as Anthony confirmed that's the message created an option and not an obligation. Perhaps, The board isn&

[ICNick]

Agree that we need to be factual and not go into dozen of different directions. Certain people will always find something wrong does not matter what, unfortunately it is sometimes human nature (la nature humaine).

[Nergy]

Let's hope Pelham, extend and increase their offer to get a corner position to stop the greedy and selfserving management diluting us to the bones. 10 milion shares @1.5 CAD is still a bargain.

[ICNick]

It says that they will buy back 7.2 million shares and will cancel them. Total number of shares will be down by about 8% to around 84 million shares. To me it means more dividends per share long term and hopefullt the stratgy will be lifting the stock to a better value per hare. Let's not kid ourselves, theonly reason this stock is at 1.20 is because of Pelham. Basically if Pelham fails, the

[lumpy13]

Bottom line, without Pelham the share price would probably be around $1.  Mgmt had excess cash prior years, but have done little in way of share buybacks.  They are only doing it now in response to Pelham and to keep the share price up (at least until Pelham goes away).  Given all mgmt's RSUs and options, they have no incentive to pay a dividend as the minority shareholders

[lumpy13]

Furthermore, once the remaining $51m construction debt is paid off, NKL's interest in Ramu increases from 8.56% to 11.3% First, wouldn't it make more sense applying excess cash to paying off the loan? Second, what is the interest rate on the construction loan?  Is there a logic in incurring debt to payoff the loan faster It;s prepayable without penalty), thereby increasing its share

[Suppe11]

You need no analysis. A child could see, that all fcf should be used to pay down the debt. A closer call in the actual interest environment would be, to take on debt, to pay down the construction debt. Buyback, divis...with debt and interest ? Kick the rising interest on the Ramu mine further down the road ? It's a finite ressource. Other than the Ramu owners, noone should have an interest, to

[Talchior]

I asked yesterday on the ceo.ca channel.  Anthony Mileweski confirmed that's an option and not an obligation. As I thought, they can still use the money to pay back the debt. Without this announcement, they could not start the buy back.