Nickel 28 Announces Confirmation of Cash Distribution from Ramu Joint Venture

Nickel 28 Capital Corp. (NKL) confirmed the eleventh cash distribution from its Ramu joint venture for the first half of 2026 in a release dated October 15, 2026. The company received approximately US$4.4 million, representing its 8.56% interest in the Ramu Nickel-Cobalt project in Papua New Guinea, which is operated by China Minmetals Corporation and Metallurgical Corporation of China (MCC). Additionally, Nickel 28 received US$8.2 million as repayment of its portion of the remaining Ramu JV partner construction debt, reducing the attributable balance to approximately US$24.5 million. The combined total of US$12.6 million, comprising the distribution and loan repayment, is anticipated to be received during October 2026, though the exact timing remains to be confirmed.

CEO Craig Lennon warned that second-half 2026 performance will be weaker than the first half. Higher sulfur prices, driven by global supply constraints, continue to increase production costs. Furthermore, nickel and cobalt prices have softened from the levels experienced earlier in the year. The company expects these factors to result in reduced profitability and cash generation during the second half of 2026 compared with the first half. Despite these challenges, Nickel 28 reaffirmed its production targets for the full year, attributing the difficulties to external market factors rather than operational issues.

Nickel 28 Capital Corp. (NKL) released its fiscal Q2 results on 2026-09-21, confirming a cash distribution and loan repayment scheduled for October 2026 following the completion of the June 30, 2026, Ramu joint venture audit. This announcement serves as a confirmation of a pre-flagged event, with the magnitude of the payout marking a significant increase compared to the prior cycle.

The current distribution for H1 2026 totals US$12.6 million, comprising a US$4.4 million distribution and US$8.2 million in debt repayment. This represents roughly double the combined US$6.1 million (US$2.1 million distribution plus US$4.0 million debt repayment) confirmed on 2026-05-13 for H2 2025. The debt balance has been lowered from approximately US$31.9 million to approximately US$24.5 million. This reduction marks real balance-sheet progress, as every repayment accelerates the automatic step-up in joint venture interest from 8.56% to 11.3% once the balance is cleared.

The company also addressed softer H2 performance, citing sulfur cost pressure and lower metal prices. These factors were not genuinely new, having been repeatedly pre-flagged in releases on 2026-06-10, 2026-06-29, and 2026-09-21. The current statement serves as a firmer confirmation of these known headwinds. While the strong H1 payout and material debt reduction are constructive, the market had already been informed to expect an October distribution, and the look-ahead commentary reiterates previously disclosed risks.

Nickel 28 Capital Corp. (TSXV: NKL; FSE: 3JC0) is a nickel-cobalt producer whose principal asset is an 8.56% joint-venture interest in the producing, long-life Ramu Nickel-Cobalt integrated operation in Papua New Guinea, operated by MCC / China Minmetals Corporation (a Fortune Global 500 operator). Ramu has been in operation since 2012 and is an HPAL (high-pressure acid leach) nickel laterite operation producing mixed hydroxide precipitate (MHP).

Ramu production (calendar/operational basis) has been consistent and at or above nameplate: - 2024: ~28,669 t Ni and 2,625 t Co (production). - 2025: 33,007 t Ni and 3,099 t Co (production), 32,627 t Ni and 3,061 t Co (sales). - Q1 2026: 8,785 t Ni / 855 t Co produced; Q2 2026: 8,234 t Ni / 811 t Co produced. - 2026 guidance: ~33,100 t Ni and ~3,100 t Co.

Alongside Ramu, Nickel 28 manages a portfolio of 10 nickel/cobalt/scandium royalties on development and exploration projects in Canada, Australia and PNG, including Dumont (1.75% NSR, Québec), Turnagain (2.0% NSR, BC), Nyngan (1.7% GRR, Australia), and Flemington (1.5% GRR, Australia).