Conic Releases Ramu Q1 2020 Operating Costs, Issues Audited Financial Statements and Announces Results of Annual Meeting
NEWS RELEASE TSX Venture: NKL
CONIC RELEASES RAMU Q1 2020 OPERATING COSTS, ISSUES
AUDITED FINANCIAL STATEMENTS AND ANNOUNCES RESULTS OF
ANNUAL MEETING
TORONTO, ONTARIO, June 22, 2020 — Conic Metals Corp. (“ Conic” or the “ Company”) (TSXV:
NKL) is pleased to provide operating costs 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 operating costs continue to consistently show that it is a low cost asset capable of delivering strong
cash flow despite the downward pressure we have seen on nickel and cobalt prices during this global
pandemic” stated Justin Cochrane, President and CEO. “Our actual cash cost to produce a pound of nickel
contained in MHP was well below $ 3.00 per pound which provides significant insulation against nickel
price volatility” added Mr. Cochrane. According to Wood Mackenzie, the lowest quartile of C1 Cash Cost
of nickel production is forecast to be $3.35 per pound in 2020. C1 Cash Cost differs from actual production
cost as it includes transportation and refining costs to produce Class I or Class II nickel. Ramu produces
nickel in the form of mixed hydroxide product ( “MHP”) which contains approxim ately 40% nickel and
3.5% cobalt. MHP is a desired raw material for the manufacture of lithium ion battery cathode materials
such as NCA and NMC, which are being extensively adopted in the electrification of vehicles.
The table below presents the previously disclosed production update with the addition of actual cash cost.
Note 1 – Ramu design capacity of 32,600 tonnes/year contained nickel
Note 2 – Cash Cost Actual is net of byproduct credits and does not include transportation and refining charges by 3rd parties
Q1 Q2 Q3 Q4 Q1
Ore Processed (dry kt) 800 959 911 886 920
MHP Produced (dry tonne) 19,653 22,490 21,186 19,695 21,177
Contained Nickel (tonne) 7,663 8,767 8,390 7,902 8,635
Contained Cobalt (tonne) 704 793 740 674 720
Nickel Capacity Utilization (% of design1) 94% 108% 103% 97% 106%
MHP Shipped (dry tonnne) 17,219 24,607 37,605 24,460 17,408
Contained Nickel (tonne) 6,588 9,457 14,531 9,685 6,108
Contained Cobalt (tonne) 609 861 1,329 827 522
C1 Cash Cost $2.34 $3.14 $3.69 $4.05 $3.65
C1 Cash Cost for 25 th Percentile $2.56 $3.48 $3.42 $4.05 $3.35
Cash Cost Actual2
$2.44 $2.41 $2.75 $2.68 $2.12
2019 2020
A. Conic has included certain performance measures in this press release that do not have any
standardized meaning prescribed by International Financial Reporting Standards ( “IFRS”),
including (i ) C1 Cash Cost and (ii) Cash Cost Actual. C1 Cash Cost is a metric published
independently by Wood Mackenzie. The C1 Cash Cost presented is annualized cash cost to
produce one pound of finished nickel product based on Wood Mackenzie’s analysis of global
refined nickel operations. 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 m ay calculate these non -IFRS
measures differently. Note these figures have not been audited and are subject to change.
Audited Financial Statements
On June 15, 2020, the Company filed its initial Audited Financial Statements and Management’s Discussion
and Analysis for the period ended December 31, 2019. Mr. Cochrane commented on the filings “Conic
finished the year with over US$4.4 million in cash and US$13.0 million in net working capital and repaid
US$17.2 million of its Ramu operating debt on January 1 st, 2020. These are outstanding results for Ramu
which we believe is one of the best nickel-cobalt operations in the World.”
Additionally, Conic expects to file quarterly financial statements for the period ended March 31, 2020 (and
related management’s disc ussion and analysis thereon) (collectively, the “ Q1 2020 Disclosure
Documents”) at the earliest opportunity and currently expects to file them no later than July 14, 2020 , as
previously announced.
Annual General and Special Meeting Results
The Company also announced today the voting results for the election of its board of directors, which took
place at the Company’s Annual General and Special Meeting held on June 19, 2020 in Toronto, Ontario,
Canada. The number of directors was set at five and all of the nominees listed in the management proxy
circular dated May 15, 2020 (the “Circular”) were elected as directors of Conic at the meeting. Detailed
results of the votes are set out below:
Election of Directors Outcome of the Vote
Votes for
(#)
Votes for
(%)
Votes
withheld (#)
Votes
withheld
(%)
Justin Cochrane Elected 25,176,436 98.832% 297,647 1.168%
Candace MacGibbon Elected 25,393,032 99.682% 81,051 0.318%
Anthony Milewski Elected 25,073,706 98.428% 400,377 1.572%
Maurice Swan Elected 25,197,156 98.913% 276,927 1.087%
Philip Williams Elected 25,200,106 98.924% 273,977 1.076%
At the Annual General and Special Meeting, the shareholders of the Company also approved: (i) the
appointment of Baker Tilly WM LLP as auditor and authorized the directors to fix their remuneration; and
(ii) on a disinterested basis, authorized the omnibus long-term incentive plan of the Company and ratified
certain grants thereunder, all as more particularly described in the Circular. The voting results on each
resolution are set out below:
Set Number of Directors at 5
Outcome of the Vote
Votes for Votes withheld
Carried 25,333,295 140,788
99.447% 0.553%
Appointment of Auditor
Outcome of the Vote
Votes for Votes withheld
Carried 31,820,074 294,510
99.083% 0.917%
Approval of Omnibus Long-Term Incentive Plan
Outcome of the Vote *
Votes for Votes withheld
Carried 16,201,992 2,422,635
86.992% 13.008%
* Excluding an aggregate of 6,849,456 common shares beneficially owned by insiders of the Company in accordance with the rules
of the TSX Venture Exchange.
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 C anada
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 con tains 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; statements with respect to
the operational and financial results of the Ramu project; statements with respect to the prospects of nickel
and cobalt in the global electrification of vehicles; statements related to the impact of COVID -19 on the
Company’s business, operations and prospects; statements with respect to the timing of the filing of the Q1
2020 Disclosure Documents; and statements with respect to the business and assets of Conic and its strategy
going forward. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-
looking statements involve known an d 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, o ther 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.
Investor Contact:
Justin Cochrane
Tel: 647.846.7765
Email: [email protected]