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First Sales Contract and Q2 Production Update

3 Jul 2014 07:00

RNS Number : 2899L
Stratmin Global Resources PLC
03 July 2014
 



3 July 2014

 

StratMin Global Resources Plc

("StratMin" or the "Company")

 

First Sales Contract Signed and Q2 Production Update

 

StratMin (AIM: STGR), the graphite production and exploration company with assets in Madagascar, announces a production and sales update covering the second quarter of 2014.

 

The Company has signed a sales contract with an established graphite trading company, based out of the USA. Initial deliveries are for:

 

1. 54 tonnes of +40 mesh

2. 19 tonnes of -40+80 mesh

3. 38 tonnes of +60 mesh

 

 

Further sales contracts are expected and will be subject to separate announcements.

 

Quarterly production numbers are as follows

 

Mesh Size

Tonnes

Avg. Carbon Content

+40

105.0

90.30%

+60

54.5

89.41%

+80

17.0

87.05%

-80

18.5

89.60%

Total

195.0

89.70%

 

 

While the recent sales negotiations were ongoing, management took the decision to reduce production in May and June in order to avoid accumulating stock until confirmation, through receipt of sales orders, of the marketability of the Company's product. Now sales channels are being secured, production will be fine-tuned and increased to meet demand and maximise profitability.

 

Volume capacity at the plant remains at 120 tonnes per month. Delivery of the upgraded de-watering system to Madagascar is expected towards the end of July. Installation will be complete, subject to smooth customs clearance by mid-August, increasing capacity at the plant to more than 300 tonnes per month.

 

Further technical updates are being made at the mine to improve grade consistency. While current grade levels are satisfactory, the Company is working on increasing these in order to open up new potential markets and achieve the best price possible for its products.

 

 

Manoli Yannaghas, Managing Director, said;

 

"I am very pleased with the Company's progress. We have swiftly proven our ability to sell a premium product at a confidential price that reflects its quality, following the commencement of commercial production, as recently as the start of this quarter.

 

"We expect new sales contracts to be the start of longer term relations with these customers."

 

The Company will continue to update the market on production and sales each quarter.

 

 

For further information please visit www.stratminglobal.com or contact:

 

StratMin Global Resources Plc

Manoli Yannaghas (Managing Director)

 

+44 (0) 20 3691 6160

Strand Hanson (Nomad & Financial Adviser)

James Spinney / Ritchie Balmer

 

+44 (0) 20 7409 3494

Hume Capital Securities Plc (Sole Broker)

Jon Belliss / Abigail Wayne

 

+44 (0) 20 3693 1470

Blytheweigh (Financial PR)

Tim Blythe / Halimah Hussain / Camilla Horsfall

+44 (0) 20 7138 3204

 

 

-ends-

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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