Nickel 28 Capital Corp (NKL) AI Stock Analysis

• Market Cap: C$90.33M
• Dividend Yield: N/A
• Average Volume (3M): 28.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: N/A
• EPS Growth: 16.24%
• Country: CA
• Employees: 7
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.01
• Shares Outstanding: 86,860,560
• 10 Day Avg. Volume: 37,811
• 30 Day Avg. Volume: 28,189
• PEG Ratio: 0.37
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$0.94 ▲(22.08% Upside)

The score is primarily constrained by weak and volatile financial performance, including recent losses and low earnings visibility, despite a healthier leverage profile and improved TTM cash flow. Technicals are supportive due to an uptrend above major moving averages, but extreme overbought signals raise near-term risk. Valuation is also a headwind because losses make the negative P/E less informative and there is no dividend support.

Positive Factors

Capital-light royalty/stream model

The royalty/stream business model provides durable, capital-light exposure to mineral production without operating mines. This reduces direct capex and operating risk, allowing the company to earn cash tied to third-party production over multi-year mine lives and preserve balance-sheet flexibility.

Strategic exposure to nickel & battery metals

Concentrated royalty and stream interests in nickel and battery-related metals position the firm to capture production-linked cash flows from those commodity supply chains. Structural mine lives for underlying assets can translate into multi-year streams of receipts, supporting sustainable revenue sources if production persists.

Improved leverage and equity buffer

A lower D/E (~0.43) and a sizable equity base relative to debt reduce refinancing and solvency risk. Improved leverage enhances financial flexibility to withstand commodity cycles, pursue incremental royalties or cover obligations, supporting longer-term stability compared with earlier, more leveraged periods.

Negative Factors

Weak profitability and no reported revenue

A TTM net loss and consistently reported $0 revenue indicate earnings are not driven by recurring operating sales, reducing predictability. Reliance on non-operating items for reported results undermines margin analysis and makes future profit sustainability and cash generation harder to forecast.

Inconsistent cash generation and prior cash burns

Recent modest positive operating and free cash flow contrasts with large prior free-cash-flow deficits, demonstrating volatility. This uneven cash history increases execution and funding risk, making the company vulnerable if royalties underperform or if losses recur and external financing conditions tighten.

Negative returns on equity

A negative TTM ROE (~-5.5%) signals the company is not generating positive returns on shareholder capital. Persistent negative returns limit the ability to reinvest profitably, constrain long-term shareholder value creation, and point to inefficiencies despite a healthier leverage profile.

Nickel 28 Capital Corp Business Overview & Revenue Model

Company Description

Nickel 28 Capital Corp. operates as a base metals company. The company holds an 8.56% joint-venture interest in the Ramu Nickel-Cobalt operation located in Papua New Guinea. It also manages a portfolio of 13 nickel and cobalt royalties on exploration and development projects in Canada, Australia, and Papua New Guinea. It intends to invest in a battery metals-focused portfolio of streams, royalties, and direct interests in mineral properties containing battery metals. The company was formerly known as Conic Metals Corp. and changed its name to Nickel 28 Capital Corp. in March 2021. Nickel 28 Capital Corp. was incorporated in 2019 and is headquartered in Toronto, Canada.

How the Company Makes Money

Nickel 28 Capital Corp makes money primarily through its investments in nickel and cobalt streams and royalties. The company earns revenue by receiving a percentage of the production output or sales from the mines in which it has a stake. These streams and royalties are acquired through strategic partnerships and investments in mining operations, allowing Nickel 28 to benefit from the global demand for nickel and cobalt without the high costs associated with direct mining operations. Additionally, the company's earnings are influenced by fluctuations in global metal prices and the performance of its partner mines.

Nickel 28 Capital Corp Financial Statement Overview

Summary

Nickel 28 Capital Corp faces significant financial challenges, with zero revenue and ongoing losses. Despite moderate leverage and positive equity, negative cash flow and income metrics highlight financial instability.

Income Statement

The company has consistently reported zero revenue across all periods, which is a significant concern. The net income has been negative in recent periods, indicating ongoing losses without any revenue generation. The EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.

Balance Sheet

The company has a moderate debt-to-equity ratio of approximately 0.44 in TTM, which indicates some leverage but not excessively high. However, the declining total assets over time could be a concern. Stockholders' equity remains positive, suggesting some stability, but the lack of revenue generation is a risk.

Cash Flow

The company has been generating negative free cash flow consistently, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, and free cash flow growth is also negative, indicating cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-3.96M	0.00	0.00	14.71M	18.26M	3.91M
Net Income	-4.50M	-1.93M	-6.18M	6.11M	11.18M	2.56M
Balance Sheet
Total Assets	180.74M	130.94M	141.74M	154.72M	160.13M	176.22M
Cash, Cash Equivalents and Short-Term Investments	13.29M	8.06M	7.86M	2.39M	4.08M	6.52M
Total Debt	35.48M	36.56M	44.15M	55.90M	73.42M	107.10M
Total Liabilities	66.45M	48.45M	55.14M	63.97M	76.51M	107.18M
Stockholders Equity	81.56M	82.50M	86.60M	90.75M	83.62M	69.05M
Cash Flow
Free Cash Flow	926.08K	-5.71M	-8.37M	-7.14M	-5.71M	-3.17M
Operating Cash Flow	926.08K	-5.71M	-8.37M	-7.14M	-5.70M	-3.17M
Investing Cash Flow	2.52M	7.01M	14.51M	6.93M	3.18M	5.18M
Financing Cash Flow	-1.36M	-1.08M	-678.20K	-1.39M	110.97K	-69.94K

Nickel 28 Capital Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NKL, the sentiment is Positive. The current price of 0.77 is below the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.75, and above the 200-day MA of 0.72, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 86.28 is Negative, neither overbought nor oversold. The STOCH value of 91.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NKL.

Nickel 28 Capital Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FPX	55 Neutral	C$182.51M	-41.43	-6.27%	―	―	-60.92%
NKL	51 Neutral	C$90.33M	-14.40	-5.33%	―	―	16.24%
ESK	50 Neutral	C$47.57M	-18.48	-50.65%	―	―	62.70%
GMA	50 Neutral	C$58.76M	-22.07	-102.86%	―	-100.00%	-33.58%

Nickel 28 Capital Corp Corporate Events

Nickel 28 Plans Share Buyback as Management Sees Deep Valuation Discount

Nickel 28 Capital Corp. has announced plans for a normal course issuer bid to repurchase up to 7,050,819 of its common shares, or about 8.1% of its outstanding stock, through the TSX Venture Exchange, with all shares bought to be cancelled. Management argues that the current trading price significantly undervalues the company relative to its net asset value, and believes that using excess liquidity to buy back shares will be accretive to net asset value per share and increase remaining shareholders’ proportional ownership; the bid, to be administered by Haywood Securities and supported by an automatic purchase plan during blackout periods, is subject to TSXV approval and could run for up to 12 months, reflecting a continued focus on capital return and balance-sheet-driven value creation for investors.

The most recent analyst rating on (TSE:NKL) stock is a Hold with a C$0.94 price target. To see the full list of analyst forecasts on Nickel 28 Capital Corp stock, see the TSE:NKL Stock Forecast page.

Nickel 28 Posts Solid Q3 on Strong Ramu Output and Tight Cost Control

Nickel 28 Capital Corp. reported fiscal third-quarter 2026 results showing steady production and profitability from its Ramu Nickel-Cobalt joint venture in Papua New Guinea, with 9,242 tonnes of contained nickel and 887 tonnes of contained cobalt produced, and 9,880 tonnes of nickel and 948 tonnes of cobalt sold in mixed hydroxide precipitate. The company posted a US$1.4 million share of operating profit from Ramu, net profit of US$0.6 million, an improved cash balance of US$9.5 million, and maintained non-recourse construction debt at US$35.4 million, while keeping corporate overheads below US$2.5 million excluding legal and one-time costs. Management highlighted uninterrupted operations and expectations for similar performance in the final quarter of 2025, which should support stronger loan repayment and potential cash distributions in the second half of the year, even as nickel prices remain flat, cobalt prices tick up, and Indonesian policy actions on illegal mining introduce potential supply-side tightening for the broader market.

Nickel 28 Reports Strong Q3 2025 Results Amid Market Changes

Nickel 28 Capital Corp. reported strong operational results for Q3 2025 from its Ramu Nickel-Cobalt operation, with significant increases in nickel and cobalt production compared to the previous year. Despite a decrease in nickel prices, the company benefited from higher cobalt prices and strong sales, reducing inventory and capitalizing on favorable market conditions. The announcement of Indonesia’s restrictions on new nickel processing licenses could impact future market supply, potentially benefiting Nickel 28’s market position.

Nickel 28 Capital Corp Updates on Strategic Mineral Projects Amid Global Policy Shifts

Nickel 28 Capital Corp has provided an update on its royalty portfolio, highlighting the strategic importance of scandium and cobalt in the context of global trade and policy changes. The company’s exposure to these critical minerals positions it well amidst rising demand and supply constraints, particularly with cobalt’s strengthened market outlook due to production restrictions in the Democratic Republic of Congo. Additionally, developments in projects such as the Dumont Nickel and Nyngan Scandium Project indicate progress in securing necessary approvals and support, which could enhance Nickel 28’s market positioning and stakeholder value.

Nickel 28 Capital Corp. Reports Cash Distribution and Debt Reduction from Ramu Joint Venture

Nickel 28 Capital Corp. announced the receipt of a cash distribution of approximately US$1.4 million from its Ramu joint venture, reflecting its 8.56% interest in the project. The company also confirmed a US$2.5 million repayment of its construction debt for the Ramu project, reducing its balance to US$34.9 million. Despite reduced production in the first half of 2025 due to mechanical failures, the company anticipates improved results in the second half of the year. Additionally, developments in its royalty portfolio, including projects in Canada and Australia, signal positive progress for Nickel 28’s future operations.