Nickel 28 Capital has released the operational results for the first quarter of 2024 for the Ramu Nickel-Cobalt operation in Papua New Guinea. Nickel 28 holds an 8.56% joint-venture interest in Ramu, which is operated by the Metallurgical Corporation of China (MCC).
For Q1 2024, Ramu produced 8,282 tonnes of contained nickel in mixed hydroxide precipitate (MHP), compared to 9,016 tonnes in the same period last year. Cobalt production reached 767 tonnes, down from 798 tonnes in Q1 2023. Despite the decline in production, nickel sales increased to 8,864 tonnes from 7,914 tonnes in the same period last year.
The London Metal Exchange (LME) average nickel price was US$7.53 per pound in Q1 2024, a 36% decrease from the previous year. The Fast Markets average cobalt price also fell by 21% to US$13.49 per pound. Despite the price drops, the actual cash cost net of by-product credits improved, decreasing by 4% to $3.00 per pound of nickel produced as MHP, down from US$3.12 per pound last year.
“Ramu’s continued stable operations have once again delivered strong results in a depressed nickel and cobalt price environment,” said Christopher Wallace, interim CEO of Nickel 28. “Continued reductions in input and operational costs resulted in improved production costs, despite prolonged weakness in by-product credits received from cobalt. We expect that Ramu’s full year costs and production will remain within guidance being 30,000 tonnes of contained nickel in MHP and cash costs in the range of $2.50-$3.50 per pound of nickel. Our expectation is that nickel pricing should remain at or above current levels of approximately $8.00 per pound for the balance of the year. 2024 production guidance is lower than previous years as we embark on some capital revitalization projects which are expected to require longer shutdowns in Q3. We will update the market on the expected impact later in the year.”
Ramu’s operating performance for Q1 2024 shows robust results despite market challenges, with continued focus on cost reduction and operational efficiency. The company remains optimistic about maintaining production within the projected guidance for the year. 
