2nd Jul 2015 11:05
LONDON (Alliance News) - StratMin Global Resources PLC Thursday said it has sold the entire inventory of lower-grade carbon in graphite finished product that was stored in its warehouse, but plans to maintain its better-grade production moving forward.
In May, StratMin produced its first graphite at a minimum grade of 94% carbon in graphite, which was an "important milestone for the company in moving towards profitability" as the prices the company could sell it for were at a premium compared to the product below the 94% grade.
Before that was achieved, sub-94% product was produced and stored in a warehouse.
StratMin's joint venture partner, Tirupati Carbons & Chemicals Group Ltd, then collaborated with the joint venture's offtake partner and managed to negotiate a deal whereby the offtake partner agreed to purchase the warehouse inventory.
That joint venture is based in Madagascar, specifically on the Loharano project.
"Whilst the company is now confident in its ability to produce at the 94% CIG grade, this sale demonstrates the company's enhanced marketing capability for varying CIG grades thereby increasing potential profitability levels," said the company.
"Clearing the warehouse of this inventory is an excellent demonstration of the immediate commercial impact of our partnership with Tirupati. Their global market reach helped us to quickly find a buyer for this material so we can move it out of the warehouse and release the working capital tied up," said Chief Executive Brett Boynton.
StratMin shares were down 0.8% to 4.84 pence per share on Thursday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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