Nickel 28 Capital Corp. expects to receive US$12.6 million from Papua New Guinea’s Ramu Nickel-Cobalt project through a cash distribution and repayment of joint-venture construction debt, as the Canadian company warns that rising costs and softer metal prices could weaken earnings in the second half of 2026.
The company said on Thursday it had received confirmation of a US$4.4 million cash distribution for the first half of 2026, reflecting its 8.56% interest in the Ramu joint venture. It also received confirmation of an US$8.2 million repayment of its share of the remaining construction debt, reducing its attributable balance to about US$24.5 million.
The timing of the cash distribution remains to be confirmed, but receipt is expected during October, Nickel 28 said.
Ramu, located in Madang province, is operated by China Minmetals Corp. and Metallurgical Corp. of China.
Nickel 28 chief executive Craig Lennon said the combined US$12.6 million in distributions and loan repayments reflected strong production and sales volumes, favourable nickel and cobalt prices, and strong payable terms during the first half.
However, he warned that the operating environment was likely to become more challenging in the second half as higher sulphur prices increased production costs and nickel and cobalt prices softened from earlier levels.
“These challenges are largely driven by external market factors rather than the underlying operational performance of Ramu,” Lennon said.
The project continued to operate well, and management remained confident of achieving its full-year production targets, he said. Nevertheless, higher operating costs and lower realised commodity prices were expected to reduce profitability and cash generation compared with the first half.
Nickel 28 said the strong first-half financial performance demonstrated Ramu’s value as a cash-generating asset, despite the anticipated near-term pressure on margins.
The Ramu operation produces nickel and cobalt, metals used in batteries and other industrial applications. Nickel 28’s interest provides shareholders with exposure to both commodities, while the company also holds a portfolio of 10 nickel and cobalt royalties on development and exploration projects in Canada, Australia and Papua New Guinea.
The latest distribution is the company’s 11th cash distribution from the Ramu joint venture, according to the announcement.
The outlook highlights the sensitivity of the project’s financial returns to movements in commodity prices and key production inputs, even as the operator maintains its production targets.
Nickel 28 is listed on the TSX Venture Exchange under the ticker NKL and on the Frankfurt Stock Exchange under 3JC0.
