27 Dec 2019 07:00
27 December 2019
ADAMAS FINANCE ASIA LIMITED
("ADAM" or the "Company")
Future Metal Holdings Limited: Production Commenced and Update
Adamas Finance Asia Limited (AIM: ADAM), the London quoted company focused on providing shareholders with attractive uncorrelated, risk adjusted returns from a diversified portfolio of pan-Asian investments, is pleased to provide an update on its investment in Future Metal Holdings Limited ("Future Metal"), which was previously known as Hong Kong Mining Holdings. The Company has an 85% shareholding in Future Metal, representing ADAM's largest investment by value in the portfolio.
The quarry's processing line has now been installed and commissioned and the initial run of the processing plant has been successfully conducted. The equipment and transmission system are working well with approximately 200 Tonnes of dolomite produced during the initial run. Further ramping up of production commenced in the third week of December and production is on track to achieve the daily production target of 800 to 1,000 tonnes over the coming quarter.
By mid-next year, the management team expects daily production capacity to reach around 2,000 Tonnes due to increased operational efficiency to be extracted from the current configuration of equipment onsite. The actual level of output will be configured based on contracts for sale of product which management will look to secure in the 1st half of 2020.
Based on the successful initial production run, the Company is constructing a steel structure to enclose its stockpile site, installing dust removal equipment and commencing the process of land hardening to comply with the local environmental requirements. These initiatives remain on plan for delivery after the initial production run and ramping up of daily production.
Future Metal entered its first sales contract on 30 November 2019 with a local construction company for an order of 1,000 Tonnes of wall rock at a price of RMB48/Tonne (USD6.8/Tonne). Meanwhile, the quarry has also been contacted by other potential buyers with respect to the availability of its products now that initial production has commenced.
The local management team intends to obtain a Work Safety Permit and Discharge Permit, which, according to local regulations, can only be applied for after production has commenced. These initiatives are expected to complete in the first half of 2020.
John Croft, Chairman of Adamas Finance Asia Limited, commented:
"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 Q1 2020 as production ramps up and further sales contracts are agreed."
Further details on Future Metal including an updated photo and video gallery of the site can be found on its website: www.futuremetalholdings.com
For further information, please visit the Company's website at http://adamasfinance.com and follow the Company on Twitter (@AdamasFinance).
FOR FURTHER INFORMATION, PLEASE CONTACT:
Adamas Finance Asia Limited | +44 (0) 1825 830587 |
John Croft | |
WH Ireland Limited - Nominated Adviser | +44 (0) 20 7220 1666 |
James Joyce | |
James Sinclair Ford | |
Pello Capital Limited - Corporate Broker | +44 (0) 20 3700 2500 |
Tim Sohal | |
Maitland/AMO - Communications Advisor | +44 (0) 20 7379 5151 |
James Benjamin | |
Peter Hamid |
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
About Adamas Finance Asia
Adamas Finance Asia Limited (ADAM) is quoted on the AIM Market of the London Stock Exchange and is committed to providing shareholders with attractive uncorrelated, risk adjusted long-term returns from a combination of realising sustainable capital growth and delivering dividend income.
The Company is focused on providing growth capital and financing to emerging and established Small and Medium Enterprises (SME) sector throughout Asia, well diversified by national geographies, instruments and asset classes. This vital segment of the economy is underserved by the traditional banking industry for regulatory and structural reasons.
The Company's investment manager, Harmony Capital, seeks to capitalise on its team's established investment expertise and broad networks across Asia. Through rigorous diligence and disciplined risk management, Harmony Capital is dedicated to delivering attractive income and capital growth for shareholders with significant downside protection through selectively investing in assets and proactively managing them.
Harmony Capital is predominately sourcing private opportunities and continues to create a strong pipeline of attractive income generating assets from potential investments in growth sectors across Asia, including healthcare, fintech, hospitality, IT and property.