As the world slowly re-emerges from COVID-19 and equities linked to base metals continue to move higher, we have considered the need to reposition the Company and update our shareholders in greater detail regarding the Company's strategic plans and portfolio. We have observed that the Company is not consistently and/or accurately included in either nickel producer or streaming and royalty comp sets. We have contemplated why this may be, and believe that the market may not fully understand Conic's assets and its unique position as an owner of one of the world's top producing nickel-cobalt mines and one of the only pure-play nickel cobalt producers listed on the
Conic has always been a nickel and cobalt producer. This is important. We are not an exploration story, nor are we a development story. Unlike so many exploration companies, we are not a promise of future production unlikely to be realized. When you own Conic you don't have to worry about whether a mining permit will be granted or if the market will support billions of dollars of equity and debt capital raises, or if the technology will work. Instead, we offer exposure to the production of nickel and cobalt metal today. We currently own a 8.56% joint venture interest in the Ramu nickel-cobalt mine and management expects this interest will increase over time. The Ramu mine produces an average of 33,000 tonnes of nickel and 3,000 tonnes of cobalt annually, has been in production for 9 years, and has a mineral reserve and mineral resource base that should support production in the decades to come.
By way of background, the Ramu deposit was discovered in 1962 and acquired by Highlands Pacific in 1993. As with many junior companies, when it came time to advance the project, Highlands was fortunate enough to secure
Construction and initial ramp-up required approximately
The non-recourse debt is paid down by cash sweeps from the free cash flow that is generated from nickel and cobalt sales. The first tranche of operating debt will be reduced in Q1 2021 by the cash flow generated in the second half of 2020. In addition, at current nickel prices, operating costs and production levels, management estimates that Conic's attributable interest in Ramu should generate approximately
Shareholders and analysts alike often have the same question - 'Is Conic Metals a producer or a royalty company'
About Conic
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. 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.
Contact:
Tel: 647.846.7765
Email: info@conicmetals.com
(C) 2021 Electronic News Publishing, source