Nickel 28 Capital Corp V.NKL

New board and what’s next?

[ICNick]

There were comments in the past that this business requires minimum hands-on operations. IMO, more time should be spent on strategic approches. Key topics should be visited or re-visited, e.g. accelerated repayment or not of Ramu when considering the current global financial environment, short and medium-term pricing of nickel when considering additional production world-wide vs current demand, necessity to lobby goverments in order to establish global standards for environmentally friendly nickel mining, with recognized seals of approval for such producers meeting thise standards, and other topics.
There is much do be done as opposed to simply be waiting for those royalties to kick in.

[Talchior]

With current increase of interest rate, I don't see added value to accelerate repayment 

[ICNick]

The point here is not to decide today what is right or wrong but to assess and try to find the sweet spot between multiple factors, including price of nickel, interest rates, global and certain local economies amongst others. If we understand the green zone we can prepare the moves accordingly. 

[Suppe11]

This actionism costs around 10m per year. Just sit and wait probably would cost the same. The G&A side of the business should be cut to the bone. Even half of it is generous. The problem with the debt...they pay 5% interest on it...if they would replace it with normal debt, you're looking for an effective interest rate of 20+% (with fees etc.). Imho the only way out of it, would be

[lumpy13]

I agree that the overhead at NKL is way too high and could be cut dramatically.  Royalty companies input on green mining is not necessary and likely ineffective, hence a waste of money.  The miners have to focus on actions to implement green mining. But if they could prepay the construction loan debt, their interest in Ramu would increase 30% (from 8%+ to 11%+).  Although it has

[Michiel]

With pelham members on the board, the focus will now finally be on creating shareholder value. The former management was mainly out to fill their pockets as much as possible. pelham, on the other hand, want a good return on their investment as quickly as possible. This is also what we, the small shareholders, want.

[Suppe11]

For companies like this one, I fear the interest + fees and stuff, will look more like 20% at the moment.

[microcaptt]

Even if it costs 20% it's still an accretive transaction.  You will have an increased interest cost of 15% (they are already paying 5%) which if you assume they borrow 35mm to retire Ramu debt at Y/E that equals 5.25mm of incremental costs pa in 2024.  Once the debt is repaid their ownership in Ramu steps up to 11.3% which equates to $10mm + of additional cash flow pa.  So if

[Michiel]

I fully agree. 

[Talchior]

You forget one point. The current payment can be done when they want. If the mine is blocked for one year and no income, there is no problem.  If you take a new one, you must pay in time. 

[microcaptt]

If the mine closes down NKL will still owe their interest. it will just be deferred.  That could be the same case w a new loan.  It's not accurate to presume what the new loan terms are.  It could be structured as PIK interest like many bridge loans are w a term longer than the expected payment from CF. I don't think using draconian assumptions to rationalize an existing