The company reported contained nickel sales of 3,336 tonnes during the quarter, which is down from 8,746 tonnes a year earlier. Sales of contained cobalt fell to 305 tonnes from 787 tonnes.

"Sales in the first quarter were impacted by increased restrictions in our main export destination as a result of the global pandemic and the 2022 Winter Olympics. We expect this to normalise in Q2 2022," Nickel 28's chairman Anthony Milewski said.

Nickel 28 holds an 8.56% joint-venture interest in Ramu, which is operated by the Metallurgical Corporation of China.

"Ramu's production has rebounded to expected levels in Q1 2022 as PNG and the rest of Asia begin to emerge from the global pandemic," Milewski said.

Production for the quarter stood at 8,756 tonnes of contained nickel in mixed hydroxide precipitate, which compares to 8,805 tonnes a year earlier. Contained cobalt in MHP production for Q1 was 830 tonnes, up from 813 tonnes a year earlier.  

"Despite significant increasing in raw materials and input costs, Ramu was able to improve its cash costs for the quarter because of significantly improved by-product credits, mainly cobalt credits," the chairman said.

The company reported an actual cash cost, net of by-product credits of US$1.48 per pound of nickel produced as MHP, which is a cost reduction of 12% from Q1 last year.

"We expect that Ramu's full year costs and production will remain within guidance being 32,000 to 33,000 tonnes of contained Nickel in MHP and cash costs below $2.00/lb," Milewski said.

Nickel 28's share price slumped 7% day on day to C$1.25 (US$0.96). The company has a market capitalization of C$113.93 million.