Nickel 28 Files Fiscal Q1 2027 Financial Statements
Nickel 28 Capital Corp. reported its financial results for the quarter ended April 30, 2026, driven by strong operational performance at its 8.56% joint-venture interest in the Ramu Nickel-Cobalt operation in Papua New Guinea. The company reported a total net and comprehensive profit of US$2.1 million (US$0.02/share), supported by robust production volumes and favorable metal prices, despite anticipated margin pressures from higher sulfur prices in the coming quarter.
During the quarter, the company produced 8,785 tonnes of contained nickel and 855 tonnes of contained cobalt in mixed hydroxide precipitate (MHP). Sales volumes included 8,632 tonnes of contained nickel and 838 tonnes of contained cobalt in MHP. Actual production costs, net of by-product sales, were US$2.81/lb of contained nickel. The company’s share of operating profit from the Ramu Nickel Mine was US$4.0 million. Profit contribution from Ramu after depreciation and amortization was also US$4.0 million, with depreciation and amortization totaling US$2.2 million.
The company concluded a Normal Course Issuer Bid (NCIB) during the quarter, repurchasing 753,300 common shares for an aggregate cost of US$605,475. It ended the quarter with a cash balance of US$8.1 million. This balance excludes a US$2.1 million cash distribution received from the Ramu Project subsequent to quarter-end in May 2026. Total non-recourse construction debt stood at US$32.3 million.
Craig Lennon, CEO, stated, "The first quarter of calendar year 2026 (fiscal year 2027) delivered a strong operational and financial performance for Ramu. Production and sales volumes were robust, supported by favourable nickel and cobalt prices, strong payability levels for both metals, and relatively low operating costs net of by-product credits. These factors contributed to a strong financial outcome from the Company's investment in Ramu and for the Company overall."
Lennon added, "The Company ended the quarter with a cash balance of US$8.1 million. This balance excludes a cash distribution of US$2.1 million received from the Ramu Project subsequent to quarter end in May 2026. Corporate overheads have returned to more normalised levels, with expenditure associated with legal matters and one-off transaction costs remaining relatively low during the quarter."
The company instituted a new Normal Course Issuer Bid (NCIB) allowing for the repurchase of up to 7,050,819 common shares. Regarding the operational outlook, Q2 2026 production, sales, and payabilities are expected to remain broadly consistent with Q1. Nickel and cobalt price consensus forecasts remain relatively unchanged, although higher sulfur prices are anticipated to negatively impact operating margins.
The cost reconciliation for actual production cost is as follows:
- Share of Ramu production costs: $8,400,939
- Share of Ramu other costs: $1,248,826
- Less Cobalt and chromite by-product revenue: ($4,451,628)
- Less Accounting adjustment: ($543,988)
- Actual production cost: $4,654,149
- Nickel produced: 1,657,399 lbs
- Unit actual production cost: $2.81/lb Ni