VANCOUVER, June 22, 2015 /CNW/ - Flinders Resources Limited ("Flinders" or the "Company") (TSXV: FDR) provides an update on Flinders' operational and corporate plans for the balance of 2015. Key points of this strategy include:
- Completion of Stage 1 plant and mine commissioning, and graphite production at the Woxna operation in Sweden;
- Implementing the next stage of the Company's growth strategy, to position Flinders as a supplier of choice to the rapidly expanding and game changing lithium ion battery energy storage market;
- Conserving the Company's strong cash position of C$4M, in the face of four year lows in natural flake graphite prices. Graphite production will be restricted until profit margins improve;
- Maintaining the Company's competitive advantage by continuing to run the Woxna operation on a "production-ready" basis;
Mr. Blair Way, President and CEO states, "The first stage of our growth strategy is now complete, which has uniquely placed Flinders as the only western producer of natural flake graphite. We are now in a strong position to implement the second stage, to place the Company as a supplier of choice for the rapidly expanding and game changing lithium ion battery energy storage. The Company has been working on optimizing a flow sheet to produce high purity graphite that was substantially developed in the early 2000's by the previous owner of the Woxna project, as well negotiating with existing high-purity technological providers. We will provide further information as the high purity project progresses.
Despite the Woxna project producing graphite to grade and recovery specifications at competitive cash costs, declining global flake graphite demand during 2015 has pushed prices to a four year low of less than US$700/tonne. Given these weakening conditions, the Board has chosen to reduce production and only supply larger volumes when improved graphite prices return. In the resource sector it is the norm to curtail production when commodity prices do not provide a reasonable return. The plant shall be maintained on a production-ready basis and working capital conserved."
Flinders is the only western producer of natural flake graphite with a fully constructed, permitted and producing plant and mine. Together with no debt and more than C$4M in cash, the Company is well positioned to concentrate its resources on research to produce high purity graphite, and initiate relevant permitting. With the knowledge gained from operating the Woxna plant for the last 10 months the Company has proven it can produce graphite competitively to customer specifications. The plant is currently undergoing a scheduled summer maintenance shutdown, and will not commence meaningful production until market conditions improve. This allows Flinders to reduce its expenditure to less than C$150,000 a month and maintain the Company's competitive advantage by continuing to run the Woxna operation on a "production-ready" basis.
The Company also advises that effective June 22, 2015, Ms Seema Sindwani resigned from her position to oversee the Investor Relations Program for the Company. The Company will manage Investor Relations in-house moving forward.
More information regarding the Company's advancement on its high purity strategy will be released as the project progresses.
On behalf of the Board,
Blair Way, President and CEO
Certain information in this news release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "Forward-Looking Statements"). All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are Forward-Looking Statements. Forward-Looking Statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. Forward-Looking Statements are based upon the opinions and expectations of the Company based on information currently available to the Company. Forward-Looking Statements are subject to a number of factors, risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the Forward-Looking Statements including, among other things, the Company has yet to generate a profit from its activities; there can be no guarantee that the estimates of quantities or qualities of minerals disclosed in the Company's public record will be economically recoverable; uncertainties relating to the availability and costs of financing needed in the future; competition with other companies within the mining industry; the success of the Company is largely dependent upon the performance of its directors and officers and the Company's ability to attract and train key personnel; changes in world metal markets and equity markets beyond the Company's control; mineral resources are, in the large part, estimates and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized; production rates and capital and other costs may vary significantly from estimates; changes in corporate goals and strategies, the Company's preliminary economic assessment is no longer current or valid and the Company has no plans to complete a new preliminary economic assessment, a pre-feasibility or feasibility study on the project, as a result there is an increased risk of technical and economic failure for the Woxna graphite project; unexpected geological conditions; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; all phases of a mining business present environmental and safety risks and hazards and are subject to environmental and safety regulation, and rehabilitation and restitution costs; the Company does not maintain insurance against environmental risks; and management of the Company have experience in mineral exploration but may lack all or some of the necessary technical training and experience to successfully develop and operate a mine. Although the Company believes that the expectations reflected in the Forward-Looking Statements, and the assumptions on which such Forward-Looking Statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on Forward-Looking Statements, as there can be no assurance that the plans, intentions or expectations upon which the Forward-Looking Statements are based will occur. Forward-Looking Statements herein are made as at the date hereof, and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these Forward-Looking Statements.
Neither 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 the accuracy of this news release.
SOURCE Flinders Resources Limited
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