NAC sells stake in Coral Bay Nickel amid volatility

Nickel Asia Corp. (NAC) is divesting its minority stake in Coral Bay Nickel Corp. (CBNC) to address ongoing financial constraints amid market volatility.

NAC disclosed in a stock exchange filing on Tuesday that it is in discussions with its long-time partner, Sumitomo Corp. of Japan, which holds an 84.38 percent stake in CBNC, to sell its 15.625 percent interest.

Andre Dy, NAC vice president for Treasury and Investor Relations, said the company will engage a third party to determine the value of the CBNC shares.

Strategic shift and growth ambitions

He emphasized that the divestment aligns with NAC's strategic shift and growth ambitions.

“With the recent volatility in the nickel market, NAC has decided to revisit its growth strategy by divesting its minority shareholding in CBNC,” Dy said.

“Over the last three years, the financial performance of CBNC was negatively impacted by increasing operating costs and weakening prices,” he added.

CBNC, operational since 2005, produces over 20,000 tonnes of nickel and 2,000 tonnes of cobalt annually, utilizing a plant near the Rio Tuba mine.

Meanwhile, NAC is advancing its renewable energy portfolio through Emerging Power Inc. and Green Light Holdings, a joint venture with Shell Investments B.V., to pursue solar, wind, and energy storage projects.