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Bullboard - Stock Discussion Forum 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... see more

TSXV:NKL - Post Discussion

Nickel 28 Capital Corp > Solid Q1 performance at Ramu
View:
Post by urai58 on May 03, 2023 7:45am

Solid Q1 performance at Ramu

The mine is running and highly profitable. What is still open is payability. Without this key number, the cash portion cannot be calculated exactly.

With the assumptions of Nickel 18 it looks like this:
Payability: 75% Ni (and 65% Co)
Quantity sold: 7914mt Ni (and 673mt Co)
Prices achieved: Ni 11.83/lb (and Co 16.98/lb)
Cash cost (net of by-product): $3.12/lb
Cobalt need not be accounted for as proceeds from cobalt are already included in cash costs.
 
Ramu Cash Flow:
7914 x 75% x 2205 x (11.83 - 3.12) = $114m.
 
Share of nickel 28 of 8.56%: 9.76m$ Cashflow. From this amount (almost 10m$) the sustaining CAPEX as well as the depreciation have to be deducted.
 
urai58
 
Comment by Talchior on May 03, 2023 8:09am
Thanks. Also the explanation of what the management is doing for the company is appreciated. 
Comment by ICNick on May 03, 2023 8:51am
Thank you for the analysis urai58.
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