Nickel 28 Capital Corp. reported higher nickel and cobalt production, stronger sales volumes and lower operating costs from the Ramu Nickel-Cobalt operation in Papua New Guinea during the first quarter of 2026, with the project operating at 108% of its design capacity.
The company, which holds an 8.56% joint-venture interest in the Ramu operation, said production of contained nickel in mixed hydroxide precipitate (MHP) increased to 8,785 tonnes during the three months ended March 31, compared with 6,970 tonnes in the same period last year.
Contained cobalt production rose to 855 tonnes from 648 tonnes a year earlier.
Nickel sales totalled 8,632 tonnes during the quarter, up from 6,133 tonnes in the corresponding period of 2025, while cobalt sales increased to 838 tonnes from 569 tonnes.
Ore processed rose to 985,000 dry tonnes from 724,000 dry tonnes in the prior-year period, while MHP production increased to 21,697 dry tonnes from 16,902 dry tonnes. Nickel capacity utilisation reached 108% of design capacity, compared with 86% in the first quarter of 2025. Nickel 28 noted that quarterly utilisation can exceed 100% in periods without maintenance shutdowns or when operations benefit from process improvements.
Nickel inventory at the end of the quarter stood at 1,828 tonnes of nickel in MHP, compared with 1,674 tonnes at December 31, 2025.
The operation's production cost, net of by-product credits, declined to US$2.81 per pound of nickel produced in MHP from US$3.61 per pound in the same period last year, representing a 24% decrease.
Nickel 28 Chief Executive Officer Craig Lennon said the operation delivered a strong operational performance during the quarter and remained on track to achieve its full-year production targets.
He noted that no planned maintenance shutdowns occurred during the first quarter, with scheduled maintenance activities expected to take place in the second and third quarters.
The company said market conditions for both nickel and cobalt remained favourable during the period. The average London Metal Exchange nickel price was US$7.88 per pound, up 11% from the same quarter last year, while the average cobalt price increased 130% year-on-year to US$25.47 per pound.
Lennon said Indonesian government policy initiatives appeared to be targeting a nickel price environment of at least US$18,000 per tonne, equivalent to about US$8.17 per pound, while the broader industry continued to monitor the allocation of Indonesian production quotas and their potential impact on supply and pricing.
He added that payability levels for both nickel and cobalt remained above 90% and management expects those favourable terms to continue through the second and third quarters.
The company identified sulphur costs as the principal uncertainty facing the Ramu operation, citing reduced global supply linked to ongoing conflicts in the Middle East.
According to Nickel 28, higher-cost sulphur inventories are expected to be procured and consumed during the remainder of the year, which could place pressure on operating margins if nickel prices remain unchanged. The company said the impact of sulphur availability and pricing is being felt across the global nickel industry.
Nickel 28 also said the MHP market remains relatively tight, supported by strong payability levels. The company noted that any constraints on Indonesian nickel production resulting from quota allocations, together with continued sulphur supply disruptions, could further tighten the market and potentially support pricing.
The Ramu Nickel-Cobalt operation, operated by the Metallurgical Corporation of China, is one of Papua New Guinea's largest nickel projects. Nickel 28's 8.56% interest provides the company with direct exposure to nickel and cobalt, two metals widely viewed as critical to the global transition towards electric vehicles and battery technologies.
The company noted that the operating and financial figures released for the quarter are preliminary and remain subject to audit and final adjustment.
