7th Dec 2015 09:52
LONDON (Alliance News) - StratMin Global Resources PLC said Monday it has achieved operational level break-even, and said it approaches its year end "satisfied" with its progress.
The graphite production and exploration company began a process to upgrade its present plant in Madagascar to a consistent 6,000 plus tonnes per year production capability in July. The company said that production output had increased over the subsequent five month period despite some plant downtime and increased maintenance.
First stage refurbishments will be completed in December, the company said, and from January production of at least 400 tonnes per month is expected, with sustained operational profitability.
Sales during the September to November period totalled 478 tonnes, producing revenue of GBP195,000.
StratMin will use funds from Bass Metals Ltd for key equipment upgrades in its mining fleet, which will allow production to be increased to over 600 tonnes per month from the second quarter of 2016.
On Friday, StratMin said it had received funds in relation to Bass's investment into StratMin's subsidiary, and said it has amended the terms of the agreement which will allow Bass to potentially hold a larger stake than originally agreed.
In early September, Stratmin agreed a farm-in deal with Australian-listed Bass, which has acquired a 25% stake in the subsidiary that holds the Loharano graphite project in Madagascar for GBP2.0 million.
"We approach the year end satisfied with the results of a sustained effort and the all round progress in the company. We have a clear strategy to build a world-class graphite producer from our high grade, low cost, Madagascan asset base," said Chief Executive Officer Brett Boynton in a statement on Monday.
"Our new partner, Bass, has received a lot of interest from the Australian investor base and our decision to access that capital market to compliment the London listing looks set to drive shareholder returns," Boynton added.
Shares in StratMin were up 8.7% at 3.94 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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