News Summary
The news release dated December 19, 2025, reports the fiscal Q3 2026 financial results (period ended October 31, 2025). Key highlights include a net income of $0.6 million (US$0.01 per share) and a cash balance of $9.5 million. Operationally, the Ramu Nickel-Cobalt project in Papua New Guinea (PNG) produced 9,242 tonnes of nickel and 887 tonnes of cobalt in calendar Q3 2025. Sales outpaced production (9,880 tonnes of nickel sold), allowing the company to reduce its inventory. Average production costs sat at $3.07/lb nickel, net of by-products. The company expects Q4 performance to mirror Q3, facilitating further debt repayment and cash distributions in the second half of the year.
Material Impact
The impact is positive but largely routine as it confirms the operational recovery previously signaled in November.
– Operational Stability: The project has successfully moved past the mechanical failures (acid plant blower) that plagued the start of 2025. Operating at 113% capacity utilization shows the asset’s robustness.
– Inventory Monetization: Selling more than produced in a “stronger” sales environment (as per CEO comments) is a tactical win for cash flow.
– Debt Reduction: The non-recourse construction debt was reduced from $37.5 million (July) to $35.4 million (October). This is critical because Nickel 28’s ownership interest in Ramu increases from 8.56% to 11.3% automatically once this debt is retired.
– Cost Control: Management has maintained a tight lid on corporate overhead (targeted at <$2.5 million for the year), though this figure excludes legal costs, which remain a significant "hidden" variable.
Catalysts
– Calendar Q4 2025 Operating Results: Confirmation that production remained “interruption-free” as guided.
– Debt Repayment Velocity: Whether the company can maintain the ~$2 million per quarter repayment pace.
– Litigation Progress: Any court rulings regarding the $17 million in counterclaims against former executives Justin Cochrane and Conor Kearns.
– Nickel Prices: With costs at $3.07/lb and LME prices hovering near $6.80/lb (based on Nov update), margins are healthy but sensitive to the broader commodity cycle.
Materiality Conclusion
The news is Material – Positive because it demonstrates the company’s ability to generate profit and pay down debt following a period of technical distress. It validates the “world-class” status of the Ramu asset. However, it is not a “Game Changer” as it relies on the steady state of an existing asset rather than a new discovery or acquisition.
