TSX Venture: NKL
TORONTO, April 17, 2020 /CNW/ - Conic Metals Corp.
("Conic" or the "Company") (TSXV: NKL) is
pleased to provide operating results for the quarter ending
March 31, 2020 of the Company's
largest asset, being the Ramu Nickel-Cobalt ("Ramu")
integrated operation in Papua New
Guinea ("PNG"). Conic currently holds an 8.56%
joint-venture interest in the Ramu operation. Ramu is operated by
the Metallurgical Corporation of China ("MCC") which, along with its
partners, owns an 85.0% interest in Ramu.
"Ramu's Q1 production was at 106% of nameplate capacity, which
was a record for Q1 by exceeding its previous best quarter in Q1
2018 by 5%, and it continues to demonstrate the outstanding
performance of this asset for Conic's shareholders", stated
Justin Cochrane, Conic's President
and CEO. As presented in the following table, nickel production was
up approximately 13% and cobalt production was up approximately
2.5%, as compared to the same period in 2019.
|
2020
|
2019
|
|
Q1
|
Q1
|
Ore Processed (dry
kt)
|
920
|
800
|
MHP Produced (dry
tonne)
|
21,177
|
19,653
|
Contained Nickel
(tonne)
|
8,635
|
7,663
|
Contained Cobalt
(tonne)
|
720
|
704
|
Nickel Capacity
Utilization (% of design1)
|
106%
|
94%
|
MHP Shipped (dry
tonne)
|
17,408
|
17,219
|
Contained Nickel
(tonne)
|
6,108
|
6,588
|
Contained Cobalt
(tonne)
|
522
|
609
|
Note (1) – Ramu
design capacity of 32,600 tonnes/year contained
nickel
|
On the commodity price front, LME nickel prices were up slightly
in the period with the average cash settlement being US$5.77 per pound compared to US$5.61 per pound in Q1 2019. However, cobalt
prices were down 10% in the period at US$16.65 per pound compared to US$18.55 per pound in Q1 2019. Nickel prices,
like most base metal prices, have more recently been significantly
impacted by the economic fallout from COVID-19. "Despite the recent
decline in commodity prices and the continued downward economic
trends in light of the global pandemic, Ramu was able to improve on
2019 production and continue to deliver product to customers. We
have not seen a significant decline in demand for Ramu product at
present", added Mr. Cochrane.
The Company notes that in response to COVID-19, many nickel
mines are facing operating challenges. According to Wood Mackenzie,
23 nickel mines (5 of which are integrated smelter operations and
one stand-alone smelter) have had operations curtailed or disrupted
in Q1 as a result of the COVID-19 pandemic. The annualized
production of these disruptions is estimated at over 450 kt of
nickel which approaches 25% of annual global refined production.
"We wouldn't be surprised to see more closures and prolonged
shutdowns if the current pandemic continues to impact the global
economy", noted Mr. Cochrane. "Conic's management are strong
believers that Ramu is the best HPAL operation in the world and the
current performance reinforces this opinion. Our management team
and board of directors has purchased over 1,000,000 shares of Conic
in the public markets just in the last quarter as we feel the
current share price is very attractive given Ramu's potential to
deliver significant free cash".
About Conic
Conic Metals Corp. is a base metals company offering direct
exposure to nickel and cobalt, both being critical elements of
electric vehicles and energy storage systems. Conic holds an 8.56%
joint-venture interest in the producing, long-life and world-class
Ramu Nickel-Cobalt Operation located in Papua New Guinea which provides Conic with
significant attributable nickel and cobalt production. In addition,
Conic manages a portfolio of 11 nickel and cobalt royalties on
development and exploration projects in Canada and Australia. Conic will continue to invest in a
battery metals-focused portfolio of streams, royalties and direct
interests in mineral properties containing battery metals.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain information which constitutes
'forward-looking statements' and 'forward-looking information'
within the meaning of applicable Canadian securities laws. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward looking statements are often identified by
terms such as "may", "should", "anticipate", "expect", "potential",
"believe", "intend" or the negative of these terms and similar
expressions. Forward-looking statements in this news release
include, but are not limited to: statements with respect to the
business; and, assets of Conic and its strategy going forward and
statements pertaining to future events or future performance and
statements relating to the impact of COVID-19. Readers are
cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements involve known and unknown
risks and uncertainties, most of which are beyond the Company's
control. Should one or more of the risks or uncertainties
underlying these forward-looking statements materialize, or should
assumptions underlying the forward-looking statements prove
incorrect, actual results, performance or achievements could vary
materially from those expressed or implied by the forward-looking
statements.
The forward-looking statements contained herein are made as of
the date of this release and, other than as required by applicable
securities laws, the Company does not assume any obligation to
update or revise them to reflect new events or circumstances. The
forward-looking statements contained in this release are expressly
qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No securities regulatory authority has
either approved or disapproved of the contents of this news
release.
Tel: 647.846.7765
Email: info@conicmetals.com
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SOURCE Conic Metals Corp.