Adamas Says Demand For Future Metal's Dolomite In China Is High

(Alliance News) - Adamas Finance Asia Ltd on Monday said its investee Future Metal Holdings Ltd is on track to restart production by the end of 2019.

Adamas Finance, which has an 85% shareholding, said demand for Future Metal's dolomite product has risen "noticeably in recent years", particularly in China.

Future Metal's dolemite products are used for magnesium smelting and as wall rock for construction materials, Adamas said.

According to market research in China, which was commissioned by Adamas Finance's investment manager Harmony Capital Investors Ltd, other operators have lost their mining licences or have been forced to reduce the scale of their extraction there, due to government policy in the country.

Adamas Finance said the research findings underpin its confidence that Future Metal has a "readily accessible market".

Adamas Finance anticipates Future Metal to produce between 150,000 and 180,000 tonnes of qualified dolomite and 35,000 to 45,000 tonnes of unqualified dolomite.

The company forecasts qualified dolomite prices between RMB50 to RMB65, or between USD7.00 and USD9.10, and unqualified dolomite prices between RMB30 and RMB40.

Adamas Finance Chair John Croft said: "Much work has been undertaken and considerable progress made by Harmony Capital in returning the Future Metal operation to production and we remain on track to achieve this in 2019.

"There are strong indications that there will be considerable demand for Future Metal's products, which have now been independently verified by a recently completed market study. I look forward to reporting on the restarting of operations at Future Metal before the year end."

Shares in Adamas were flat at 30.00 pence each in London on Monday afternoon.