Conic Releases Ramu Q2 2020 Performance
NEWS RELEASE TSX Venture: NKL
CONIC RELEASES RAMU Q2 2020 PERFORMANCE
TORONTO, ONTARIO, August 17, 2020 — Conic Metals Corp. (“Conic” or the “Company”) (TSXV:
NKL) is pleased to provide operating results for the quarter ending June 30, 2020 of the Company’s largest
asset, being the Ramu Nickel-Cobalt (“Ramu”) integrated operation in Papua New Guinea. Conic currently
holds an 8.56% joint -venture interest in the Ramu operation. Ramu is operated by the Metallurgical
Corporation of China which, along with its partners, owns an 85.0% interest in Ramu.
“Despite the impact of the COVID pandemic on the global economy, Ramu continued to demonstrate solid
operating performance, and sales in the quarter and half year results are consistent with 2019 performance”
stated Justin Cochrane, President and CEO. “Nickel production for the half year are 1% lower in comparison
to the same period in 2019 and we expect Ramu to meet guidance of 32,000 -33,000 in 2020. We are
pleasantly surprised considering other operations had to shut down in the quarter and Ramu continues to
operate at full capacity” added Mr. Cochrane, who also noted “sales numbers in the quarter at 7,555 tonnes
of nickel contained combined with industry leading cash costs of $2.18 per pound continue to support our
belief that Ramu is the best performing HPAL operation in the world. Ramu is able to generate significant
free cash flow due to vigilance in keeping costs low. ” Actual cash costs for six months ending June 30,
2020 were $2.11 per pound of nickel produced, net of byproduct credits.
According to Wood Mackenzie, the lowest quartile of C1 Cash Cost of nickel production is forecast to be
$3.26 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 approximately 40% nickel and 3.5% cobal t. 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 electric vehicles.
Ramu’s production and Actual Cash Cost are presented in the table below.
Note (1) – Ramu design capacity of 32,600 tonne per year of contained nickel
Note (2) – Actual Cash Cost net of byproduct credits
2019 2020
Q1 Q2 Half Year Q1 Q2 Half Year
Ore Processed (dry kt) 800 959 1,759 920 814 1,734
MHP Produced (dry tonne) 19,653 22,490 42,143 21,177 18,975 40,152
Contained Nickel (tonne) 7,663 8,767 16,430 8,635 7,603 16,238
Contained Cobalt (tonne) 704 793 1,497 720 655 1,375
Nickel Capacity Utilization (% of
design1) 94% 108% 101% 106% 93% 100%
MHP Shipped (dry tonne) 17,219 24,607 41,826 15,121 19,024 34,145
Contained Nickel (tonne) 6,588 9,457 16,045 6,108 7,555 13,663
Contained Cobalt (tonne) 609 861 1,470 522 644 1,166
Cash Cost Actual2 $2.44 $2.41 $2.42 $2.05 $2.18 $2.11
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 may calculate these non-IFRS measures differently. Note
these figures have not been audited and are subject to change.
Update on Timing of Reporting of Q2 2020 Financial Results
In response to the ongoing global COVID -19 pandemic, the Canadian S ecurities Administrators have
announced additional temporary blanket relief allowing market participants an additional 45 days in which
to complete certain regulatory filings required to be made between June 1, 2020 and August 31, 2020
(including financial statements and management’s d iscussion and analysis ). Accordingly, the Company
intends to rely on this blanket relief for the filing of the Company’s quarterly financial statements for the
period ended June 30, 2020 (and related management’s discussion and analysis thereon) (collectively, the
“Q2 2020 Disclosure Documents ”) as a result of delays caused by the COVID -19 pandemic. The
Company, under this temporary relief, is making every effort to issue and file the Q2 2020 Disclosure
Documents at the earliest opportunity and currently expects to file them no later than October 13, 2020.
The Company confirms that there have been no material business developments since filing its Interim
Financial Statements (related management’s discussion and analysis thereon) filed on July 14, 2020, which
are available on SEDAR at www.sedar.com. Until such time as the Q2 2020 Disclosure Documents are
filed, the Company’s management and other insiders will observe a trading blackout consistent with the
principles contained in section 9 of National Policy 11-207 – Failure to File Cease Orders and Revocations
in Multiple Jurisdictions.
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 operational and financial results; 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; statements with respect to the timing of the filing of the Q2 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 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.
Investor Contact:
Justin Cochrane
Tel: 647.846.7765
Email: [email protected]