Nickel 28 Capital (TSXV: NKL) this morning announced its operating resulting for the three month period ended March 31, 2021. The company saw significant cash generation from its Ramu asset, to the tune of US$11.8 million.
Overall, Nickel 28 posted a net income of $4.0 million for the three month period, which was largely bolstered by its holdings in the Ramu Nickel-Cobalt mine. While no revenues were reported by the company, funding came from its share of operating profit from the mine, to the tune of US$6.5 million.
The Ramu Nickel-Cobalt Mine, in which Nickel 28 owns an 8.56% stake, had a strong quarter, with project revenue amounting to US$163 million due to strong nickel and cobalt pricing. Average cash costs for the quarter came in at $1.70 per pound of contained nickel, while quarterly production amounted to 8,805 tonnes of contained nickel and 800 tonnes of contained cobalt, making the mine the number one producer of mixed hydroxide globally.
Operationally, the company posted operating expenses of $1.4 million, the largest expense of which is salaries and fees of $0.6 million. This was offset by other income of $5.3 million, the largest of which was the aforementioned share of profit from Ramu, which was partially offset by $1.2 million in operating costs.
The company currently holds $5.5 million in cash, bringing its total current assets to $5.9 million. Total current liabilities currently sit at $16.9 million, of which $16.7 million is attributable to non-recourse debt, the balance of which is to be paid via Ramu’s H1 2021 cash flow generation.
Nickel 28 Capital last traded at $0.94 on the TSX Venture.
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