LONDON (Alliance News) - BMR Mining PLC shares were given a boost on Monday morning after the company said it has identified a potential market for its Waelz Kiln Slag assets in Zambia.
In the year to the end of June 2014, BMR wrote down the value of its WKS assets by 90% as the product is "brittle and hard", is too low a grade, and too difficult to process commercially.
But the company said it has now identified that the WKS could be used in constructing building blocks and it is preparing a submission to seek approval from the Zambian Environmental Management Agency to sell the product for use in block and concrete making.
Should that approval be sealed, BMR could start local sales of WKS, which would involve limited costs but which could generate " modest but meaningful" revenue over the next couple of years.
"We are pleased to note this significant opportunity to realise cash from the Waelz Kiln Slag which we could not otherwise process easily and in an environmentally advantageous manner. We therefore anticipate BMR generating revenue next year, following receipt of ZEMA approval, from both the processing of Wash Plant Tailings and the Waelz Kiln Slag," said BMR Chief Executive and Chairman Alex Borrelli.
Shares in BMR were up 13% to 5.35 pence on Monday morning, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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