Nickel 28 Files Fiscal Q2 2027 Financial Statements

Nickel 28 Capital Corp. (NKL) filed its fiscal Q2 2027 financial statements, covering the three months ended July 31, 2026. The release confirms figures largely pre-announced in the August 10, 2026 operating-performance release and adds the income-statement and balance-sheet outcomes.

The company reported a net and comprehensive profit of US$2.8M (US$0.03/share) for the quarter. This compares to US$2.1M (US$0.02/share) in Q1 FY2027 and just US$0.1M in the year-ago quarter (three months ended July 31, 2025).

Share of operating profit from Ramu was US$5.3M, after depreciation and amortisation of US$2.1M. This compares to US$4.0M in Q1 FY2027.

Production included 8,234 t contained nickel and 811 t contained cobalt in MHP. Sales were 8,967 t nickel and 881 t cobalt, meaning the JV sold more metal than it produced, drawing down inventory.

Actual production cost, net of by-product credits, was US$4.81/lb of contained nickel. This represents a sharp step-up from US$2.81/lb in Q1 FY2027, though this was already disclosed on August 10.

Quarter-end cash stood at US$9.2M, up from US$8.1M at April 30. Total non-recourse construction debt was US$32.7M, versus US$32.3M at April 30.

The company continued its buyback program, repurchasing 744,600 shares for US$629,638 during the quarter.

CEO Craig Lennon provided forward framing, stating that H2 2026 production and sales are expected "broadly in line with the first half." He noted that sulphur prices will be higher in H2 and "unless the revenue factors increase then margins will be reduced." A further cash distribution and loan repayment are expected in October 2026 upon completion of the June 30, 2026 JV audit.

All figures are for the 8.56% JV interest in Ramu (or company-level totals derived from it). The reconciliation table shows Q2 (three months) share of Ramu production costs of US$10.10M, other costs of US$1.57M, cobalt/chromite by-product credit of US$5.65M, and a positive accounting adjustment of US$1.46M. The accounting adjustment moved from negative in Q1 to positive in Q2, which flatters period-over-period comparability of the cost line.

Nickel 28 Capital Corp. (NKL) released a confirmation of its core operating facts on August 10, 2026, including production, sales, a US$4.81/lb cost, and the maintenance schedule. The incremental information in the recent release centers on the financial outcome and capital allocation.

Profit improved quarter-over-quarter to US$2.8M from US$2.1M. This improvement is partly a function of selling more than was produced, representing an inventory drawdown rather than a production gain. Nickel inventory fell from 1,828 t on March 31 to 1,094 t on June 30, meaning the strong sales figure is not repeatable at the same rate without rebuilding inventory.

The cost line deteriorated materially from US$2.81 to US$4.81/lb. Management had flagged this in both the Q1 filing and the August 10 release, so it is expected.

Balance sheet changes were mild and mixed. Cash increased by US$1.1M, but construction debt rose slightly from US$32.3M to US$32.7M. This is notable for a company that had been steadily paying down debt, which fell from US$35.4M in October 2025 to US$31.9M in January 2026.

Guidance remains unchanged and slightly cautious, with H2 production and sales expected to be "broadly in line" and margins at risk from sulphur. This matches prior messaging.

Versus the historical trail, Q3 FY2025 net was US$0.6M, Q1 FY2027 was US$2.1M, and now Q2 FY2027 is US$2.8M. This represents a clear upward earnings trajectory, aided by higher nickel and cobalt prices and strong payabilities. The trajectory is positive but was well telegraphed; nothing in this release is market-moving or genuinely new. It also came with no update on the more consequential open question—the proposed US$1.6B Ramu Phase II expansion and the associated buyout/dilution mechanism disclosed on April 15, 2026.

Nickel 28 Capital Corp. (TSXV: NKL; FSE: 3JC0) is a nickel-cobalt producer whose only producing asset is an 8.56% joint-venture interest in the Ramu Nickel-Cobalt integrated operation in Papua New Guinea, operated by Metallurgical Corporation of China (MCC) / China Minmetals (Fortune Global 500). Ramu is an HPAL laterite operation producing mixed hydroxide precipitate (MHP), in operation since 2012 and running at or above nameplate capacity (design ~32,600 t Ni/yr) for years. The May 15, 2026 reserve update gave total reserves of 76 Mt at 0.87% Ni / 0.09% Co (grade up from 0.81%), supporting ~20 years of mine life, with Measured & Indicated resources up ~16% year-over-year — though prepared under JORC, not NI 43-101.

In addition to Ramu, Nickel 28 manages a portfolio of 10 nickel, cobalt and other-metal royalties on development and exploration projects in Canada, Australia and PNG. The most advanced are:

• Dumont (Québec, 1.75% NSR, fully permitted / construction-ready, selected for Quebec's "Filon" fast-track support and with a permit extension to 2031)
• Turnagain (B.C., 2.0% NSR, 85/15 Giga Metals/Mitsubishi)
• Nyngan (NSW, 1.7% GRR, DFS update underway)
• Flemington (NSW, 1.5% GRR, moving into PFS)

These are long-dated optionality, not near-term cash generators.