Nickel 28 Sees Ramu Mine Improve Production In Q1 Versus Fourth Quarter

The latest operational update for the Ramu Nickel-Cobalt mine was released this morning by Nickel 28 Capital Corp (TSXV: NKL). Found in Papau New Guinea, the company currently owns an 8.56% stake in the Ramu Mine, and it represents one of its largest assets.

The first quarter of 2022 saw the mine produce a total of 8,756 tonnes of contained nickel in MHP, an improvement over the 6,368 tonnes produced in the fourth quarter. Contained cobalt meanwhile amounted to 830 tonnes, versus the 579 tonnes produced last quarter.

In terms of sales, nickel sales of 3,336 tonnes at an average price of $11.97 per pound were reported for the quarter, versus 4,987 tonnes at $8.99 per pound in the prior quarter. Contained cobalt meanwhile saw 305 tonnes at an average price $36.24 per pound sold, versus 478 tonnes in the fourth quarter at an average price of $29.79 per pound.

Sales during the quarter are said to have been negatively impacted by increasing restrictions in China due to the pandemic, as well as the Winter Olympics that took place earlier this year. Sales however are expected to normalize in the second quarter.

Cash costs per pound meanwhile hit $1.48 for the first quarter, versus cash costs per pound last year of between $1.80 and $2.20.

Ramu’s production has rebounded to expected levels in Q1 2022 as PNG and the rest of Asia begin to emerge from the global pandemic. Despite significant increases in raw materials and input costs, Ramu was able to improve its cash costs for the quarter because of significantly improved by-product credits, mainly cobalt credits. We expect that Ramu’s full year costs and production will remain within guidance being 32,000 to 33,000 tonnes of contained Nickel in MHP and cash costs below $2.00/lb. of Nickel provided by-product credits remain consistent,” said Nickel 28 Chairman Anthony Milewski.

Nickel 28 last traded at $1.25 on the TSX Venture.

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