14th Apr 2014 08:03
LONDON (Alliance News) - StratMin Global Resources PLC Monday said its Lohorano plant in Madagascar is now operating consistently on a one-shift-per-day basis, marking the beginning of commercial production.
In a statement, StratMin also said it is negotiating with a number of potential customers for its graphite concentrate and expects to complete marketing agreements over future product sales in the coming months.
Based on recent production performance, StratMin said it expects to produce 100 tonnes of high grade flake graphite with a carbon content expected to be in excess of 90% in April.
The flake sizes will ultimately be separated into 3 saleable categories: +80, +60 and +40 mesh. Production volumes will increase in subsequent months and will be the subject of production updates.
Further test work at the mine site in the last week achieved a carbon content of 95%, StratMin said, adding that the result was achieved on -80mesh, or "Fines" by using a secondary a grinding stage at the mill.
"The start of commercial production so soon after the installation and calibration of the scrubber last month is a great reflection on the quality of our team on the ground in Madagascar," Manoli Yannaghas, managing director, said in a statement.
"On the basis of last month's trial production, I am confident we will be able to steadily increase our production from a base of 100 tonnes per month in April over the second-quarter of 2014 to reach cash flow break even within the third-quarter of 2014," Yannaghas added.
StratMin shares were Monday quoted at 8.02 pence, down 4.2%.
By Samuel Agini; [email protected]; @samuelagini
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