Nickel 28 Capital Stock Price, News & Analysis

Nickel 28 Capital Corp. (OTC: CONXF) is described as a nickel-cobalt producer through its joint-venture interest in the Ramu Nickel-Cobalt Operation in Papua New Guinea and through a portfolio of royalties on nickel, cobalt and related mineral projects. The company is frequently referred to in public disclosures as holding an 8.56% joint-venture interest in the producing, long-life Ramu Nickel-Cobalt Operation, which is operated by Metallurgical Corporation of China. According to multiple company news releases, this interest provides Nickel 28 with significant attributable nickel and cobalt production and exposure to metals that the company characterizes as critical to the adoption of electric vehicles.

Nickel 28 is also described as managing a portfolio of 10 nickel and cobalt royalties on development and exploration projects in Canada, Australia and Papua New Guinea. In an update on its royalty portfolio, the company lists royalties on projects such as Dumont in Quebec, Turnagain in British Columbia, Flemington and Nyngan in New South Wales, and other exploration-stage properties in Canada and Papua New Guinea. These royalties cover commodities including nickel, cobalt, scandium and other metals, and are structured as net smelter return (NSR) royalties or gross revenue royalties (GRR) with specified percentage interests.

Core business focus

Based on its public disclosures, Nickel 28’s business model combines direct participation in a producing nickel-cobalt operation with royalty interests over a range of development and exploration assets. The company repeatedly identifies its principal asset as its joint-venture interest in the integrated Ramu Nickel-Cobalt operation in Papua New Guinea. Ramu is described as a producing, long-life operation that generates mixed hydroxide precipitate (MHP) containing nickel and cobalt. Nickel 28’s news releases provide regular operating performance data from Ramu, including quarterly production and sales of contained nickel and cobalt in MHP, production costs per pound of nickel (net of by-product credits), and capacity utilization relative to design capacity.

In addition to its operating interest, Nickel 28 emphasizes its royalty portfolio as a source of potential future exposure to nickel, cobalt, scandium and other critical minerals. The company highlights that several royalty-linked projects are in development or exploration stages and are located in established or mining-supportive jurisdictions in Canada and Australia. The royalty portfolio includes life-of-mine NSR and GRR royalties with specified percentage rates on future production, as outlined in the company’s royalty portfolio update.

Ramu Nickel-Cobalt Operation

Ramu is described in Nickel 28’s news releases as an integrated nickel-cobalt operation producing MHP. The company regularly reports Ramu’s quarterly operating performance, including:

• Tonnes of contained nickel and contained cobalt produced in MHP.
• Tonnes of contained nickel and cobalt sold in MHP.
• Average production costs per pound of contained nickel, net of by-product sales.
• Nickel capacity utilization as a percentage of design capacity.
• Nickel and cobalt inventory on hand at quarter end.

Nickel 28 also discloses that Ramu’s mineral resources and reserves are estimated by the project operator in accordance with the JORC Code, and that these estimates have been reviewed for compliance with National Instrument 43-101 standards. In a mineral resource and reserve update, the company reports year-over-year increases in total reserves, measured and indicated resources, and inferred resources, attributing these changes to continued exploration drilling at Ramu.

The company notes that following repayment of its construction debt owed to the project operator, its ownership interest in Ramu is expected to increase from 8.56% to 11.3% at no cost, and that it will have an option to purchase an additional 9.25% interest at market value, which would further increase its interest if exercised. These statements are presented as part of the company’s description of its long-term exposure to Ramu.

Royalty portfolio

Nickel 28’s royalty portfolio update outlines several specific royalty interests. Examples disclosed by the company include:

• Dumont (Quebec, Canada) – described as a shovel-ready open pit nickel-cobalt project in the Abitibi mining camp, with a life-of-mine 1.75% NSR royalty held by Nickel 28. The company cites an updated feasibility study released by a prior operator and notes that Dumont is fully permitted and located near infrastructure such as power and transportation.
• Turnagain (British Columbia, Canada) – described as a large undeveloped nickel-cobalt sulphide deposit, majority-owned by Giga Metals Corporation with a minority interest held by Mitsubishi Corporation. Nickel 28 reports that it holds a 2.0% NSR royalty on all future contained metal production from the Turnagain Nickel-Cobalt Project and notes that pre-feasibility and engineering studies are underway.
• Flemington (New South Wales, Australia) – described as a large-scale nickel-cobalt deposit in a mining-friendly jurisdiction, subject to a life-of-mine 1.5% GRR royalty held by Nickel 28.
• Nyngan (New South Wales, Australia) – described as a fully permitted, construction-ready scandium-focused project, characterized as the world’s first scandium-only mine development project, subject to a life-of-mine 1.7% GRR royalty held by Nickel 28.
• Additional royalties on projects in Yukon, Ontario and British Columbia in Canada, and on the Sewa Bay project in Papua New Guinea, covering commodities such as silver, lead, zinc, copper and cobalt through NSR or GRR structures.

The company links these royalties to broader themes around critical minerals, rare earth elements and strategic materials for clean power generation and advanced technologies, citing examples such as scandium’s use in aerospace alloys, defense systems and fuel cells.

Capital allocation and shareholder returns

In its news releases, Nickel 28 describes the use of normal course issuer bids (NCIBs) as part of its capital allocation approach. The company reports having completed an NCIB under which it purchased and cancelled common shares over a 12-month period, and later announcing a proposed new NCIB to repurchase up to a specified number of common shares, subject to TSX Venture Exchange approval. Management and the board state that they view the company’s shares as trading at a discount to net asset value and describe share repurchases as accretive to net asset value per share and consistent with an existing shareholder capital return policy.

The company also reports periodic cash distributions from the Ramu joint venture and reductions in its non-recourse construction debt associated with Ramu. These distributions and debt repayments are presented as outcomes of Ramu’s operating performance and as factors influencing Nickel 28’s financial position.

Financial reporting and governance

Nickel 28 issues regular news releases summarizing its financial results for fiscal quarters, including net and comprehensive profit or loss, cash balances and construction debt balances. These releases link financial performance to Ramu’s operating results, production costs and commodity price environments. The company also reports on corporate cost levels and describes efforts to manage overheads within targeted ranges, while noting that certain categories of expenses, such as legal claims and transaction costs, are difficult to forecast.

In addition, Nickel 28 discloses outcomes of its annual general meeting of shareholders, including the election of directors and the reappointment of its auditor. Voting results are presented in detail, indicating shareholder participation in governance matters such as board composition and auditor selection.

Sector and thematic exposure

Across its disclosures, Nickel 28 consistently frames its activities in the context of nickel and cobalt as critical minerals for electric vehicles and the broader energy transition. The company highlights that Ramu provides direct exposure to these metals, and that its royalty portfolio includes projects with nickel, cobalt, scandium and other critical or strategic minerals. It also references policy developments and market dynamics affecting critical minerals, such as government actions in Indonesia and the Democratic Republic of Congo, and initiatives in jurisdictions like the European Union and Quebec to support critical mineral projects.

FAQs about Nickel 28 Capital Corp.

• What does Nickel 28 Capital Corp. do?
  

  According to its public news releases, Nickel 28 Capital Corp. is a nickel-cobalt producer through its 8.56% joint-venture interest in the producing Ramu Nickel-Cobalt Operation in Papua New Guinea and manages a portfolio of 10 nickel and cobalt royalties on development and exploration projects in Canada, Australia and Papua New Guinea.

• What is Nickel 28’s main asset?
  

  The company identifies its principal asset as its joint-venture interest in the Ramu Nickel-Cobalt integrated operation in Papua New Guinea. Ramu is described as a producing, long-life operation that generates mixed hydroxide precipitate containing nickel and cobalt, and is operated by Metallurgical Corporation of China.

• How does Nickel 28 gain exposure to nickel and cobalt?
  

  Nickel 28 reports that it gains exposure through its attributable production from the Ramu joint venture and through royalties on nickel and cobalt projects in Canada, Australia and Papua New Guinea. The company states that these interests provide shareholders with direct exposure to nickel and cobalt, which it characterizes as critical to the adoption of electric vehicles.

• What types of royalty interests does Nickel 28 hold?
  

  In its royalty portfolio update, Nickel 28 lists net smelter return (NSR) royalties and gross revenue royalties (GRR) on projects at development and exploration stages. Examples include a 1.75% NSR royalty on the Dumont nickel-cobalt project, a 2.0% NSR royalty on the Turnagain nickel-cobalt project, and GRR royalties on scandium-bearing projects such as Flemington and Nyngan.

• Where are the projects in Nickel 28’s royalty portfolio located?
  

  The company’s disclosures indicate that its royalty portfolio includes projects in Quebec, British Columbia, Yukon and Ontario in Canada, as well as projects in New South Wales, Australia, and an exploration-stage project in Papua New Guinea.

• How is the Ramu project’s performance reported?
  

  Nickel 28 regularly publishes operating performance updates for Ramu, including quarterly production and sales volumes of contained nickel and cobalt in mixed hydroxide precipitate, production costs per pound of nickel net of by-product credits, capacity utilization, and inventory levels. These updates are presented alongside commentary from management on production conditions and commodity markets.

• What does Nickel 28 say about Ramu’s mineral resources and reserves?
  

  The company reports that Ramu’s mineral resources and reserves are estimated by the project operator in accordance with the JORC Code and have been reviewed for compliance with NI 43-101 standards. In a recent update, Nickel 28 highlighted year-over-year increases in total reserves and in measured, indicated and inferred resources, attributing these changes to exploration drilling.

• How does Nickel 28 approach capital returns to shareholders?
  

  Nickel 28 has described the use of normal course issuer bids to repurchase and cancel its common shares as part of its shareholder capital return policy. Management and the board have stated that they view share repurchases as accretive to net asset value per share when the shares trade at a discount to the company’s net asset value.

• What role do critical minerals and rare earth elements play in Nickel 28’s strategy?
  

  In its royalty portfolio update, Nickel 28 discusses exposure to critical minerals and rare earth elements, noting that some royalty-linked projects contain scandium and other materials used in clean power generation and advanced technology applications. The company references policy developments and market interest in these materials and connects them to its royalty holdings.

• On which exchanges is Nickel 28 referenced in its disclosures?
  

  Company news releases refer to Nickel 28 Capital Corp. as being listed on the TSX Venture Exchange under the symbol NKL and on the Frankfurt Stock Exchange under the symbol 3JC0. The Stock Titan page for CONXF reflects trading of Nickel 28 on the OTC market under the symbol CONXF.