Nickel 28 Releases Ramu Q4 and Full Year 2020 Performance
February 16 2021 - 3:21PM
Business Wire
Conic Metals Corp., soon to be renamed Nickel 28 Capital Corp.
(“Nickel 28” or the “Company”) (TSXV: NKL)
(FSE: 3JC) is pleased to provide results for the quarter
ending December 31, 2020 and for the full year of 2020 for the
Company’s largest asset, being Ramu Nickel-Cobalt (“Ramu”)
integrated operation in Papua New Guinea. Nickel 28 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.
“We are pleased to update investors and shareholders on the
continued strong performance of Ramu at a time when focus on nickel
intermediates for use in the production of lithium-ion batteries
for electric vehicles (EV) is accelerating” stated Nickel 28’s
President and CEO, Justin Cochrane. “Ramu once again exceeded
nameplate capacity and delivered cash costs well below industry
average” continued Mr. Cochrane.
The LME price improved significantly in Q4 to an average of
$6.25 per pound compared to $5.93 per pound in the prior quarter
and is currently trading at a range of $8.20-8.50 per pound. In
addition, cobalt prices have also improved to above $20.00 per
pound from an average of $15.73 per pound in the quarter ending
December 31, 2020. This is positively impacting Ramu’s ability to
generate free cash and Ramu is benefitting from a secondary effect
of improved payabilities for its mixed hydroxide product
(“MHP”). “Given the ongoing reports on Vale’s New Caledonian
operations being shut down, we are seeing increased tightness in
the MHP market. There are only four MHP producers worldwide and
Ramu is the leader in that group. Ramu is well positioned to
maximize return for our product as MHP is gaining traction as the
raw material of choice for battery production and even at 90%
nickel payable, it is still a significant saving compared to
current nickel sulphate prices. These factors will contribute to
Nickel 28’s target of repaying the operating portion of the Ramu JV
debt in 2021 and achieving positive cash for the Company in 2022,”
stated Anthony Milewski, chairman of the Company’s board of
directors.
Ramu produced 8,373 tonnes of contained nickel in MHP in the
quarter compared to 7,902 tonnes in the same period in the prior
year, representing an improvement of 6%. MHP shipments were
consistent with prior periods at 9,436 tonnes of nickel contained
in MHP. Ramu’s actual cash costs were $2.24 per pound of nickel
contained in MHP (net of by-product credits) for the quarter and
$2.07 per pound of nickel contained on a full year basis.
Ramu’s operating and financial performance for the period are
presented below along with comparison to prior years, noting that
these figures are unaudited.
2018
2019
2020
Q4
Full Year
Q4
Full Year
Q4
Full Year
Ore Processed (dry kt)
963
3,710
886
3,556
884
3,572
MHP Produced (dry tonne)
23,871
92,258
19,695
83,024
21,435
84,602
Contained Nickel (tonne)
9,182
35,355
7,902
32,722
8,373
33,659
Contained Cobalt (tonne)
838
3,275
674
2,911
745
2,941
Nickel Capacity Utilization (% of
design1)
113%
108%
97%
100%
103%
103%
MHP Shipped (dry tonne)
24,272
66,565
24,460
103,891
24,397
75,071
Contained Nickel (tonne)
9,413
25,960
9,685
40,261
9,436
29,683
Contained Cobalt (tonne)
865
2,429
827
3,626
850
2,600
Cash Cost Actual2
$1.49
$0.87
$2.68
$2.57
$2.24
$2.07
Note (1)
Ramu design capacity of 32,600 tonne/year
contained Ni
Note (2)
Actual Cash Cost net of byproduct
credit
A. Nickel 28 has included certain performance measures in this
press release that do not have any standardized meaning prescribed
by international financial reporting standards (IFRS) including
(Cash Cost Actual. The presentation of these non-IFRS measures is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate these non-IFRS measures differently. Note these figures
have not been audited and are subject to change.
B. These figures have not been audited and are subject to
change. As the company has not yet finished its year-end annual
close procedures, and the audit of its 2020 financial statements is
not complete, the anticipated financial information presented in
this press release is preliminary, subject to final year-end
closing adjustments and may change materially. The information
presented above has not been audited by the company's independent
accountants, should not be considered a substitute for audited
financial statements and should not be regarded as a representation
by the company as to the actual financial results.
About Conic / Nickel 28
Conic Metals Corp. is a nickel-cobalt producer through its 8.56%
joint-venture interest in the producing, long-life and world-class
Ramu Nickel-Cobalt Operation located in Papua New Guinea. Ramu
provides Conic with significant attributable nickel and cobalt
production thereby offering our shareholders direct exposure to two
metals which are critical to the adoption of electric vehicles. In
addition, Conic manages a portfolio of 13 nickel and cobalt
royalties on development and exploration projects in Canada,
Australia and Papua New Guinea.
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 and figures with
respect to the operational and financial results; statements with
respect to the prospects of nickel and cobalt in the global
electrification of vehicles; statements related to the repayment of
the Company’s Ramu operating debt; and statements with respect to
the business and assets of the Company and its strategy going
forward. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210216006122/en/
Investor Contact: Justin Cochrane Tel:
647.846.7765 Email: info@nickel28.com
Nickel 28 Capital (TSXV:NKL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Nickel 28 Capital (TSXV:NKL)
Historical Stock Chart
From Apr 2023 to Apr 2024