(Alliance News) - Adamas Finance Asia Ltd on Friday said its investee Future Metal Holdings Ltd has commenced dolomite production in the Chinese quarry and initial sales of the product has begun.
Adamas Finance, which has an 85% shareholding in Future Metal, said that around 200 tonnes of dolomite have already been produced. A ramping up of production places is on track to achieve a daily production target of 800 tonnes to 1,000 tonnes over the coming quarter and by mid-2020, 2,000 tonnes daily.
Future Metal's dolomite products are used for magnesium smelting and as wall rock for construction materials, Adamas said.
At the end of November, Future Metal entered into a sales contract with an undiclosed construction company for an order of 1,000 tonnes of wall rock at a price of CNY48 tonne, about USD6.8 per tonne.
The quarry has been contacted by other potential buyers and Future Metal plans to secure contracts for the sale of product in the first half of next year.
Adamas Finance Chair John Croft said: "We are pleased to have commenced production at the quarry and begun initial sales of Future Metal's products before the year end as planned. Full production is continuing to ramp up well with strengthening levels of interest from potential buyers of the quarry's products with prices in line with previous guidance given by the company. We look forward to updating shareholders in the first quarter of 2020 as production ramps up and further sales contracts are agreed."
Shares in Adamas Finance were untraded on Friday in London, last quoted at 19.50 pence per share.
By Ife Taiwo; ifetaiwo@alliancenews.com
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