VANCOUVER, June 22, 2015 /CNW/ - Flinders Resources
Limited ("Flinders" or the "Company") (TSXV: FDR) provides an
update on Flinders' operational and corporate plans for the balance
of 2015. Key points of this strategy include:
- Completion of Stage 1 plant and mine commissioning, and
graphite production at the Woxna operation in Sweden;
- Implementing the next stage of the Company's growth strategy,
to position Flinders as a supplier of choice to the rapidly
expanding and game changing lithium ion battery energy storage
market;
- Conserving the Company's strong cash position of C$4M, in the face of four year lows in natural
flake graphite prices. Graphite production will be restricted until
profit margins improve;
- Maintaining the Company's competitive advantage by continuing
to run the Woxna operation on a "production-ready" basis;
Mr. Blair Way, President and
CEO states, "The first stage of our growth strategy is now
complete, which has uniquely placed Flinders as the only
western producer of natural flake graphite. We are now in a
strong position to implement the second stage, to place the Company
as a supplier of choice for the rapidly expanding and game changing
lithium ion battery energy storage. The Company has been
working on optimizing a flow sheet to produce high purity graphite
that was substantially developed in the early 2000's by the
previous owner of the Woxna project, as well negotiating with
existing high-purity technological providers. We will provide
further information as the high purity project progresses.
Despite the Woxna project producing graphite to grade and
recovery specifications at competitive cash costs, declining global
flake graphite demand during 2015 has pushed prices to a four year
low of less than US$700/tonne. Given
these weakening conditions, the Board has chosen to reduce
production and only supply larger volumes when improved graphite
prices return. In the resource sector it is the
norm to curtail production when commodity prices do not provide a
reasonable return. The plant shall be maintained on a
production-ready basis and working capital
conserved."
Flinders is the only western producer of natural flake graphite
with a fully constructed, permitted and producing plant and mine.
Together with no debt and more than C$4M in cash, the Company is well positioned to
concentrate its resources on research to produce high purity
graphite, and initiate relevant permitting. With the
knowledge gained from operating the Woxna plant for the last 10
months the Company has proven it can produce graphite competitively
to customer specifications. The plant is currently undergoing a
scheduled summer maintenance shutdown, and will not commence
meaningful production until market conditions improve. This
allows Flinders to reduce its expenditure to less than C$150,000 a month and maintain the Company's
competitive advantage by continuing to run the Woxna operation on a
"production-ready" basis.
The Company also advises that effective June 22, 2015, Ms Seema
Sindwani resigned from her position to oversee the Investor
Relations Program for the Company. The Company will manage
Investor Relations in-house moving forward.
More information regarding the Company's advancement on its high
purity strategy will be released as the project progresses.
On behalf of the Board,
"Blair Way"
Blair
Way, President and CEO
Forward-Looking Information
Certain information in this news release may constitute
forward-looking statements or forward-looking information within
the meaning of applicable securities laws (collectively,
"Forward-Looking Statements"). All statements, other than
statements of historical fact that address activities, events or
developments that the Company believes, expects or anticipates will
or may occur in the future are Forward-Looking Statements.
Forward-Looking Statements are often, but not always, identified by
the use of words such as "seek," "anticipate," "believe," "plan,"
"estimate," "expect," and "intend" and statements that an event or
result "may," "will," "can," "should," "could," or "might" occur or
be achieved and other similar expressions. Forward-Looking
Statements are based upon the opinions and expectations of the
Company based on information currently available to the Company.
Forward-Looking Statements are subject to a number of factors,
risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the
Forward-Looking Statements including, among other things, the
Company has yet to generate a profit from its activities; there can
be no guarantee that the estimates of quantities or qualities of
minerals disclosed in the Company's public record will be
economically recoverable; uncertainties relating to the
availability and costs of financing needed in the future;
competition with other companies within the mining industry; the
success of the Company is largely dependent upon the performance of
its directors and officers and the Company's ability to attract and
train key personnel; changes in world metal markets and equity
markets beyond the Company's control; mineral resources are, in the
large part, estimates and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized; production rates and
capital and other costs may vary significantly from estimates;
changes in corporate goals and strategies, the Company's
preliminary economic assessment is no longer current or valid and
the Company has no plans to complete a new preliminary economic
assessment, a pre-feasibility or feasibility study on the project,
as a result there is an increased risk of technical and economic
failure for the Woxna graphite project; unexpected geological
conditions; delays in obtaining or failure to obtain necessary
permits and approvals from government authorities; all phases of a
mining business present environmental and safety risks and hazards
and are subject to environmental and safety regulation, and
rehabilitation and restitution costs; the Company does not maintain
insurance against environmental risks; and management of the
Company have experience in mineral exploration but may lack all or
some of the necessary technical training and experience to
successfully develop and operate a mine. Although the Company
believes that the expectations reflected in the Forward-Looking
Statements, and the assumptions on which such Forward-Looking
Statements are made, are reasonable, there can be no assurance that
such expectations will prove to be correct. Readers are cautioned
not to place undue reliance on Forward-Looking Statements, as there
can be no assurance that the plans, intentions or expectations upon
which the Forward-Looking Statements are based will occur.
Forward-Looking Statements herein are made as at the date hereof,
and unless otherwise required by law, the Company does not intend,
or assume any obligation, to update these Forward-Looking
Statements.
Neither 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
the accuracy of this news release.
SOURCE Flinders Resources Limited