Nickel 28 Capital Corp (TSXV: NKL) yesterday announced its operating results for the second quarter ended June 30, 2020. The company posted a net and comprehensive income of $6.1 million, a significant improvement over the prior quarter on a sequential basis.
Positive net income was generated as a result of the firms share of operating profit from the Ramu Nickel Mine in Papua New Guinea. The mine generated the firm $8.4 million in operating profits for the quarter, a 29.9% increase over the $6.5 million in profits the firm saw from its 8.56% ownership in the joint venture in Q1.
Perhaps more significantly, the firm is under the understanding that it has seen the repayment of the firms operating debt as a result of the quarterly results at the mine, which will trigger cash flow for Nickel 28. This repayment is expected to be confirmed within the next six weeks, with cash flow expected to exceed the current US$10.2 million in operating debt that is remaining.
“In addition to another exceptionally strong quarterly performance from Ramu, the Company believes it has reached a significant milestone and repaid its operating debt based on Ramu Mine’s continued exceptionally strong results,” commented Chairman Anthony Milewski on the results at Ramu.
Outside of Ramu, the firm saw operating expenses of $1.1 million during the three month period, down from $1.4 million in the first quarter. The largest expense is currently general and administrative expenses, which came in at $0.4 million during the quarter.
The company ended the quarter with a net income of $6.1 million, a 55.0% increase over the $4.0 million generated in the first quarter by the company. Year to date, the firm has recorded $10.1 million in net income.
The results posted today by the firm follow the previously announced operating results for Ramu for the first half of the year, with the mine producing 16,578 tonnes of contained nickel.
Nickel 28 Capital last traded at $0.97 on the TSX Venture.
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