Nickel 28 Files Fiscal Q2 2027 Financial Statements
Rising sulphur costs threaten to compress Ramu margins even as Nickel 28 posts quarterly profit, maintains cash and buys back shares.
Rhea-AI Summary
Nickel 28 Capital (CONXF) reported fiscal Q2 2027 results for the quarter ended July 31, 2026, driven by its 8.56% interest in the Ramu nickel-cobalt operation in Papua New Guinea.
For the second calendar quarter, Ramu produced 8,234 tonnes of nickel and 811 tonnes of cobalt in mixed hydroxide precipitate (MHP), with sales of 8,967 tonnes of nickel and 881 tonnes of cobalt. Unit actual production cost was US$4.81/lb of contained nickel, net of by-product credits. The company’s share of operating profit from Ramu was US$5.3 million for the quarter, contributing to total net and comprehensive profit of US$2.8 million or US$0.03 per share.
Nickel 28 ended the quarter with US$9.2 million in cash and US$32.7 million of non-recourse construction debt, and repurchased 744,600 shares for US$629,638. Management expects second-half 2026 production and sales to be broadly in line with the first half but notes rising sulphur costs may reduce margins if nickel and cobalt revenue factors do not improve.
Positive
- Net and comprehensive profit US$2.8 million (US$0.03/share) for Q2 2027
- Ramu operating profit share US$5.3 million for the second calendar quarter
- Unit actual production cost US$4.81/lb Ni in Q2 2026
- Cash balance US$9.2 million at July 31, 2026
- Share repurchases 744,600 shares for US$629,638 during the quarter
- Non-recourse construction debt US$32.7 million limits recourse to the project
Negative
- Sulphur prices expected higher in H2 2026, pressuring margins if revenue factors do not rise
- Increasing operating costs cited due to rising sulphur prices in the quarter
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - September 21, 2026) - Nickel 28 Capital Corp. (TSXV: NKL) (FSE: 3JC0) ("Nickel 28" or the "Company") has released its financial results for the quarter ended July 31, 2026.
Quarterly Highlights
Key financial and operating highlights from the Company's second financial quarter ended July 31, 2026, and the operations of the Company's principal asset, an
- Production of 8,234 tonnes of contained nickel and 811 tonnes of contained cobalt in mixed hydroxide precipitate ("MHP") during the second calendar quarter.
- Sales of 8,967 tonnes of contained nickel and 881 tonnes of contained cobalt in MHP during the second calendar quarter.
- Actual production costs for the second calendar quarter, net of by-product sales, of US
$4.81 /lb of contained nickel. - Share of operating profit from Ramu Nickel Mine of US
$5.3 million during the second calendar quarter. - Total net and comprehensive profit of US
$2.8 million (US$0.03 /share) for the three months ended July 31, 2026. - Financial quarter-end cash balance of US
$9.2 million . - Total non-recourse construction debt of US
$32.7 million .
Craig Lennon, the Company's Chief Executive Officer, stated: "The second calendar quarter of 2026 was a continuation of the first quarter, delivering a strong operational and financial performance for Ramu. Increasing operating costs, due to rising sulphur prices, were offset by relatively strong production and sales volumes, favourable nickel and cobalt prices, and strong payability levels for both metals. Ramu generated a profit contribution of US
The Company ended the quarter with a cash balance of US
Looking ahead, the Company expects production and sales in the second half of 2026 to be broadly in line with the first half, however, the revenue factors, being nickel and cobalt prices together with respective payabilities, are difficult to forecast. Sulphur prices in the second half will be higher than the first half, and unless the revenue factors increase then margins will be reduced. Indonesian policy and decisions by producers in Indonesia continue to be a focus for the market as any changes there could impact supply and therefore pricing.
During the quarter ended July 31, 2026, the Company repurchased 744,600 common shares for an aggregate cost of US
About Nickel 28
Nickel 28 Capital Corp. is a nickel-cobalt producer through its
Scientific and Technical Information
Disclosures of a scientific or technical nature in this news release have been reviewed and approved on behalf of Nickel 28 by Alan Lambden, P. Geo., an independent consultant to Nickel 28 and a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The scientific and technical information concerning Ramu is based on operational data provided by Ramu NiCo Management (MCC) Limited ("MCC Ramu"), the operator of Ramu, to Nickel 28 through its joint-venture interest. Mr. Lambden reviewed the reported production and sales figures against the information provided by MCC Ramu and considers the information adequate for the purposes of this disclosure. Mr. Lambden has not independently verified the underlying operational data generated by MCC Ramu.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain information which constitutes 'forward-looking statements' and 'forward-looking information' within the meaning of applicable Canadian securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to: statements and figures with respect to the operational and financial results of the Ramu project; statements related to the anticipated annual production from the Ramu project; statements related to the Company's anticipated future corporate costs; and statements with respect to the business and assets of the Company and its strategy going forward. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, most of which are beyond the Company's control. Should one or more of the risks or uncertainties underlying these forward-looking statements materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements.
The forward-looking statements contained herein are made as of the date of this release and, other than as required by applicable securities laws, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. The forward-looking statements contained in this release are expressly qualified by this cautionary statement.
Non-IFRS and Other Financial Measures
Management uses actual production cost in this press release and other documents, which is a non-IFRS financial measure. Management uses this measure to monitor the financial performance of the Company and believes this measure enables investors and analysts to compare the Company's financial performance with its competitors and/or evaluate the results of its underlying business. This measure is intended to provide additional information, not to replace measures under International Financial Reporting Standards ("IFRS"), and does not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As this measure does not have a standardized meaning, it may not be comparable to similar measures provided by other companies. This non-IFRS financial measure is reconciled to its most directly comparable IFRS measure below.
Actual production cost
Given that the Ramu operation produces nickel and cobalt in MHP, together with chromite as a separate by-product, the Company believes that disclosing "actual production cost", which represents the actual operating costs to produce one pound of contained nickel in MHP, net of by-product credits (expressed as $/lb nickel produced), provides useful information to investors in evaluating Ramu's operating results in the same manner as management and the board of directors. Actual production cost is calculated as the Company's share of Ramu production costs and share of Ramu other costs, less cobalt and chromite by-product revenue and accounting adjustments, to calculate actual production cost, which is then divided by volume units (nickel) to ascertain unit actual production cost. Actual production cost is not a standardized financial measure under IFRS and therefore may not be comparable to similar financial measures presented by other companies.
The following table reconciles reported three- and six-month production cost to actual production cost:
| Three months ended June 30, 2026 | Six months ended June 30, 2026 | |
| Share of Ramu production costs (1) (2) | $ 10,103,856 | $ 18,504,795 |
| Share of Ramu other costs (1) (3) | 1,569,607 | 2,818,433 |
| Less: | ||
| Cobalt and chromite by-product revenue | (5,650,456) | (10,102,084) |
| Accounting adjustment | 1,455,970 | 912,068 |
| Actual production cost | 7,478,977 | 12,133,212 |
| Nickel produced (lbs) | 1,553,446 | 3,210,845 |
| Unit actual production cost ($/lb Ni produced) | $ 4.81 | $ 3.78 |
Notes:
- (1)Refer also to Note 5(ii) of the Company's consolidated financial statements for the three and six months ended July 31, 2026.
- (2)Share of production costs are recognized against income in the period.
- (3)Includes selling costs, sales commission, royalties and Papua New Guinea government levy.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No securities regulatory authority has either approved or disapproved of the contents of this news release.
For more investor information - please contact:
Nickel 28 Investor Relations
Attn: Mr. Brett Richards
+1 905 449 1500
Email: info@nickel28.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/315088
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How does Nickel 28 define and calculate its non-IFRS measure "actual production cost"?
Actual production cost represents the operating cost to produce one pound of contained nickel in MHP, net of cobalt and chromite by-product credits. It is calculated as Nickel 28’s share of Ramu production costs plus its share of other Ramu costs, less cobalt and chromite by-product revenue and accounting adjustments, then divided by nickel production volume in pounds. The company presents this non-IFRS metric to evaluate Ramu’s operating results on a per‑pound nickel basis.
What production cost reconciliation data did Nickel 28 disclose for the three and six months ended June 30, 2026?
For the three months ended June 30, 2026, Nickel 28’s share of Ramu production costs was US$10,103,856 and other costs were US$1,569,607, less US$5,650,456 of cobalt and chromite by-product revenue and an US$1,455,970 accounting adjustment, resulting in actual production cost of US$7,478,977 on 1,553,446 lbs of nickel produced, or US$4.81/lb. For the six months, actual production cost was US$12,133,212 on 3,210,845 lbs of nickel, or US$3.78/lb.
What outlook did Nickel 28 provide for Ramu’s production, sales and margins in the second half of 2026?
The company expects Ramu’s production and sales in the second half of 2026 to be broadly in line with the first half. However, it anticipates higher sulphur prices in the second half and indicates that, unless nickel and cobalt prices and payabilities (the revenue factors) increase, margins will be reduced. The company also states that Indonesian policy and producer decisions remain a focus because potential changes could affect supply and pricing.
What additional cash flow event did Nickel 28 highlight after the quarter end?
The company stated that a further cash distribution is expected to be received and a loan repayment made in October 2026 when the June 30, 2026 Ramu joint‑venture audit is completed. Corporate overheads are described as remaining in line with budget.