Nickel 28 Announces Proposed Ramu Expansion and Related Developments

• Most Recent Announcement (April 15, 2026): The operator of the Ramu Nickel-Cobalt operation (MCC) has lodged a proposal with the Papua New Guinea Mineral Resources Authority for a Phase II expansion.
• Expansion Scope: Estimated capital expenditure of US$1.6 billion to approximately double current production capacity.
• Nickel 28 Position: Holds an 8.56% indirect interest in Ramu. Under Joint Venture Agreements, MCC must offer to purchase minority interests at fair market value (FMV) or allow partners to fund their pro-rata share. Failure to contribute leads to dilution based on a cumulative cost formula.
• Company Response: Nickel 28 is evaluating options under existing agreements to maximize shareholder value. CEO Craig Lennon states confidence in MCC's expertise but emphasizes careful evaluation of the JV terms.
• Historical Context (Feb 2026): Recent Q4 and Full Year 2025 results showed strong operational performance with nickel production up ~15% YoY and cobalt up ~18% YoY. Cash balance was US$9.5 million as of Oct 2025, with non-recourse construction debt at US$35.4 million.
• Historical Context (Feb 2026): A Normal Course Issuer Bid (NCIB) was approved to repurchase up to 8.1% of outstanding shares, signaling management's view that the stock trades at a discount to net asset value.

• Strategic Crossroads: The news introduces a significant capital decision point for Nickel 28. With a market cap of approximately US$45 million and cash reserves of ~US$9.5 million, funding a pro-rata share of the US$1.6 billion expansion (estimated >US$130 million) is not feasible without raising substantial new capital or diluting existing shareholders further.
• Valuation Implications: The proposal validates the long-term value and growth potential of the Ramu asset. If MCC exercises its option to buy out minority interests at FMV, this could unlock liquidity for Nickel 28 shareholders at a premium reflecting the expansion's upside. Conversely, if Nickel 28 chooses not to participate and is diluted, their ownership stake will decrease significantly over time.
• Operational Continuity: The news follows strong operational results from Feb 2026 (production up, costs down), confirming the underlying asset is healthy before this capital decision is made.
• Risk Profile: As a risk-averse analyst, the uncertainty regarding the final outcome of the JV evaluation (sell vs. dilute) creates near-term volatility. However, the existence of an FMV buyout offer provides a valuation floor for the stake.
• Conclusion: The news is positive in that it confirms asset growth and potential liquidity options, but it is categorized as Routine - Positive because no binding transaction has occurred yet, and the immediate financial impact on Nickel 28's balance sheet remains pending their decision.

• Company Profile: Nickel28 Capital Corp. is a mining company focused on generating free cash flow from its joint venture interest in the Ramu Nickel-Cobalt operation while holding a portfolio of royalties on critical mineral projects.
• Flagship Project (Ramu): Located in Madang Province, Papua New Guinea. Operated by MCC (China Metallurgical Group Corporation). Produces mixed hydroxide precipitate (MHP) containing nickel and cobalt.
• Production Status: Consistent producer since 2012. Design capacity of 32,600 tonnes Ni/year. Recent utilization exceeded design capacity (101% in Q4 2025).
• Royalty Portfolio: Includes interests in Dumont (Quebec), Turnagain (BC), Nyngan (Australia), and Flemington (Australia), providing exposure to nickel, cobalt, scandium, and other critical minerals.