Conic Releases Ramu Q1 2020 Production Performance
NEWS RELEASE TSX Venture: NKL
CONIC RELEASES RAMU Q1 2020 PRODUCTION PERFORMANCE
TORONTO, ONTARIO, April 17, 2020 — 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 1 06% of nameplate capacity, which was a record for Q1 by exceeding its
previous best quarter in Q 1 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 pr oduction 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 cu rrent 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. Forwa rd 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 n ot 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.
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