Atlantic Nickel reports continued strong operational and financial performance i… – Press Release


LONDON, May 23, 2023 /PRNewswire/ — Atlantic Nickel (“Atlantic Nickel” or the “Company”) and Appian Capital Advisory LLP (“Appian”) are pleased to announce continued strong operational and financial performance in the first quarter of 2023 at the Company’s Santa Rita nickel sulphide mine (“Santa Rita” or the “Mine”) located in Bahia, Brazil. This follows a record year for Santa Rita in 2022 and contributes to its growing track record of mature, consistent and improving performance.

Santa Rita is one of the very few long-life nickel sulphide mines in operation globally, boasting 34 years of mine life producing between 20-35 ktpa NiEq contained in concentrate. Based on an NI 43-101 technical report completed in 2021, the operation mines an open-pit with a minimum 8-year life and an NPV8 of US$570m, and transitions to an underground sublevel caving operation for another 27 years with an NPV8 of US$812m. Capital expenditure for the underground is expected to be fully funded out of operating cash flow.

Atlantic Nickel Q1 2023 performance highlights

  • ESG and safety performance continue to be industry leading with a Lost Time Injury Frequency Rate over the last 12 months of 0.18
  • Adjusted EBITDA of US$51.2m (Q1 2022 US$60.7m) on revenue of US$76.3m (Q1 2022 US$79.8m)
  • Production of 28.7kdmt of nickel concentrate (Q1 2022 28.0kdmt) containing 4.0kt of nickel (Q1 2022 3.9kt) in addition to copper, cobalt, gold and platinum and palladium by-products
  • C1 cost of US$3.37/lb Ni reflects a continuation of Santa Rita’s highly competitive cost position
  • Expanded hedging program secures forward pricing of >US$13.00/lb on c.60% of payable nickel produced through the end of 2023

Paulo Castellari, CEO of Appian Capital Brazil, commented:

“I am delighted to report Atlantic Nickel’s continued strong performance, building on the record results in 2022. Its industry-leading cost position and best-in-class safety record remains a major differentiator, reflecting the asset’s quality and our team’s…