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Conic Metals Releases Ramu Q1 2020 Operating Costs, Issues Audited Financial Statements and Announces Results of Annual Meeting
TORONTO--(BUSINESS WIRE)--Conic Metals Corp. (“Conic” or the “Company”) (TSXV:NKL) is pleased to provide operating costs for the quarter ending March 31, 2020 o
About this update from Nickel 28 Capital Corp
[{"type":"text","content":"TORONTO--(BUSINESS WIRE)--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 approximately 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. 2019 2020 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  ...