Nickel 28 Announces 2023 Operational Results for Ramu Nickel-Cobalt Project
Nickel 28 Capital Corp has reported a slight decrease in production, but maintained strong operational efficiency throughout the year.
In the fourth quarter of 2023, Ramu produced 7,825 tonnes of nickel, marking an 8% decline compared to the same period in the previous year, primarily due to unplanned outages caused by earthquake events. Despite this, the full year saw the production of 33,604 tonnes of contained nickel in Mixed Hydroxide Precipitate (MHP), slightly down by 2% from 2022 but still achieving 103% of its nameplate capacity.
Cobalt production remained stable, with 706 tonnes produced in the fourth quarter and a total of 3,072 tonnes for the year, closely matching the 2022 figures. This was attributed to a higher cobalt grade in the ore feed.
Nickel and cobalt sales for the year reflected the production volumes, with 34,122 tonnes of contained nickel and 3,086 tonnes of contained cobalt sold in 2023. However, both nickel and cobalt faced significant price decreases in 2023, with the average London Metal Exchange (LME) nickel price dropping by 16% and the Fast Markets average cobalt price by 49% compared to 2022.
Despite the global price pressures, mainly due to a surge in production from Indonesia, Ramu maintained one of the lowest cash costs for an integrated High Pressure Acid Leach nickel operation at $3.26/lb of nickel produced, net of byproduct credits.
Nickel 28's CEO, Anthony Milewski, highlighted Ramu's continued efficiency and reliability as a supplier of MHP, which has become increasingly preferred by EV battery producers. With the anticipated increase in MHP availability from Indonesia, Ramu's competitive cost structure positions it well amidst fluctuating commodity prices.
Looking ahead to 2024, Nickel 28 anticipates a 30-day shutdown in September for capital improvement projects aimed at increasing Ramu's production capacity. This is expected to further strengthen the operation's position going into 2025.
