Nickel 28 Releases Ramu Q2 Operating Performance

Nickel 28 Capital Corp. (NKL) released its second-quarter 2026 operational results for its 8.56% interest in the Ramu nickel-cobalt HPAL operation in Papua New Guinea. The company reported nickel production of 8,234 tonnes, a decrease from 8,564 tonnes in the second quarter of 2025 and 8,785 tonnes in the first quarter of 2026. Cobalt production reached 811 tonnes, up from 787 tonnes year-over-year but down from 855 tonnes in the first quarter of 2026.

Sales volumes hit record highs, with nickel sales totaling 8,967 tonnes and cobalt sales reaching 881 tonnes. These figures drew down nickel inventory to 1,094 tonnes. On the pricing front, the London Metal Exchange average for nickel rose 20% year-over-year to US$8.24 per pound, while cobalt prices surged 68% to US$25.65 per pound.

Production costs net of by-product credits increased significantly to US$4.81 per pound of nickel, compared to US$3.21 per pound in the second quarter of 2025 and US$2.81 per pound in the first quarter of 2026. The half-year 2026 average cost stood at US$3.78 per pound. Management attributed the cost increase to higher sulphur prices resulting from global supply disruptions.

Operationally, one scheduled HPAL train maintenance shutdown was completed during the quarter, with the remaining two finishing shortly after the quarter ended. Capacity utilization reached 101%. Management reiterated its confidence in achieving full-year production guidance.

Nickel 28 Capital Corp. (NKL) released a routine quarterly production update that presented mixed signals. The company reported that nickel and cobalt prices hit multi-year highs, driving record sales volumes and depleting inventory while payability terms remained strong. There was no change to the full-year production guidance of approximately 33,100 tonnes of nickel.

However, production costs nearly doubled quarter-over-quarter, reaching US$4.81 per pound. This represents a material margin squeeze, though the increase was explicitly warned about in the June 10 Q1 update, which flagged that higher-cost sulphur inventories would come under pressure on margins in Q2 and Q3. Consequently, the current cost spike, while severe, was largely anticipated by the market.

The company has consistently delivered on production targets, and the cost increase is attributed to an exogenous global sulphur disruption. Net margins remain positive given high metal prices; with a realized nickel price of US$8.24 per pound against costs of US$4.81 per pound, the company still yields a healthy margin when including cobalt credits. There is no change to the long-term thesis and no new financing or dilution risk. The news does not contain genuinely new, market-moving information, serving as an incremental update that reflects previously identified trends.

Nickel 28 Capital Corp. (NKL) is a pure-play nickel and cobalt company holding an 8.56% joint-venture interest in the producing Ramu nickel-cobalt HPAL operation in Papua New Guinea, which is operated by Metallurgical Corp. of China (MCC). This interest is set to increase to 11.3% at no cost once the construction loan is fully repaid, with an option to reach 20.55% at fair market value. Ramu is a long-life, low-cost operation producing mixed hydroxide precipitate (MHP) at over 32,600 t/yr design capacity.

In addition to its stake in Ramu, the company holds a portfolio of 10 royalties on nickel-cobalt-scandium projects in Canada, Australia, and PNG, including a 1.75% NSR on Dumont and a 2% NSR on Turnagain. The company has no active mining operations outside its passive interest in Ramu.