Production / Operations
Nickel 28 Releases Ramu Q1 Operating Performance
Nickel 28 reported expanded Q1 margins driven by lower costs and higher cobalt prices, though Phase II dilution remains a concern.
Executive Summary
- Nickel 28 released Q1 2026 operating performance for its 8.56% joint-venture interest in the Ramu Nickel-Cobalt operation.
- Q1 2026 production reached 8,785 tonnes of contained nickel and 855 tonnes of contained cobalt in MHP, up significantly from 6,970t Ni and 648t Co in Q1 2025.
- Production costs net of by-product credits fell 24% to US$2.81/lb of nickel, down from US$3.61/lb in Q1 2025.
- LME nickel prices averaged US$7.88/lb (+11% YoY) and cobalt averaged US$25.47/lb (+130% YoY).
- Management confirmed Q1 operations tracked with expectations and full-year targets remain achievable.
- Scheduled maintenance is planned for Q2/Q3, and management flagged rising sulphur costs due to Middle East supply disruptions as a key margin pressure point for the remainder of the year.
Material Impact
- The Q1 2026 results are in line with or slightly ahead of prior-year comparisons, driven by higher throughput (985k dry tonnes vs 724k) and better cobalt pricing.
- The 24% cost reduction to $2.81/lb is a positive operational development, though management cautions that rising sulphur costs will likely compress margins in Q2/Q3.
- The news is a standard quarterly operational update. While the cost improvement and cobalt price surge are favorable, the guidance remains consistent with previous full-year targets (~33,100t Ni). There is no surprise element or material deviation from prior expectations.
- The announcement does not alter the capital structure or trigger immediate financing needs, but it reinforces the operational baseline against which the upcoming Phase II expansion decision will be evaluated.
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Company Overview
- Nickel 28 Capital Corp. holds an 8.56% joint-venture interest in the Ramu Nickel-Cobalt operation in Papua New Guinea, operated by the Metallurgical Corporation of China (MCC).
- The company also holds a portfolio of ten nickel, cobalt, and scandium royalties across Canada and Australia (e.g., Dumont, Turnagain, Nyngan, Flemington).
- Ramu is a producing HPAL (High Pressure Acid Leach) operation. Q1 2026 capacity utilization hit 108% of design capacity.
- The company's strategy focuses on generating free cash flow from Ramu, repaying non-recourse construction debt to increase its JV interest (automatically rising to 11.3% post-debt repayment), and diversifying via royalties.
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Jun 29, 2026 · 09:06