Fluormin PLC Quarterly Update (8855J)
13 Agosto 2012 - 7:26AM
UK Regulatory
TIDMFLOR
RNS Number : 8855J
Fluormin PLC
13 August 2012
Fluormin plc
("Fluormin" or the "Company")
QUARTERLY UPDATE
LONDON, UK -- (Marketwire - 13 August 2012)
Fluormin Plc (AIM: FLOR) announces its quarterly update
pertaining to its fourth fiscal quarter.
Highlights
Operational highlights for Witkop Fluorspar Mine ("Witkop") for
the three months ended 30 June 2012 ("Q4"):
- 22,651 tonnes of CaF(2) produced (Q3: 19,954 tonnes)
- 79.0% CaF(2) recovery (Q3: 71.1%)
- 7.6% CaF(2) ROM head grade (Q3 9.0%)
- 26,436 tonnes of CaF(2) shipped (Q3: 12,079 tonnes)
- US$468 average price of tonnes shipped (Q3: US$472)
- 12,721 tonnes in product inventory as at 30 June 2012 (Q3: 16,376 tonnes)
- 21,700 tonnes CaF(2) under sales contracts but not yet shipped
as at 30 June 2012 (Q3: 46,500 tonnes)
* Note: average prices of shipped tonnage are typically
negotiated and settled between three to nine months in advance of
shipment and reflect weighted average prices (FOB Durban).
Operational
Q4 has continued to be challenging for the Company. Despite the
challenges a significant effort to improve Witkop's operational
performance has seen effective progress.
The mining infill drill programme has delivered greater
flexibility of ore feed with grade variability falling materially.
Furthermore run-of-mine ("ROM") dilution grade has continued to
decrease through improved mining methods.
Management effort is currently focused on improving plant
availability and CaF(2) recoveries. Operational management changes
together with the implementation of expanded planned maintenance
procedures have seen a steady decline in unplanned plant
interruptions during the quarter. Interruptions to power and water
supply were reduced to acceptable low levels. The Company believes
that this improved steady state throughput together with reduced
grade variability should see overall recoveries continue to
improve.
In early July 2012, successful plant modifications to rod mill 1
resulted in a 10% increase to total plant throughput capacity.
Similar debottlenecking of rod mill 2 is planned in August with
total plant throughput anticipated to increase by a further 10%.
The electronic ore sorting project has been placed on hold. Whilst
the electronic ore sorting saw a successful increase in CaF(2)
grades, the Company has elected to implement higher priority
projects with greater capital efficiency (e.g. the aforementioned
rod mill bypass).
During the quarter, the Company has implemented substantial cost
reductions. In this regard and as reported in the Q3 update,
agreements with mining contractors were mostly terminated as at 31
March 2012 with operations now primarily utilising a smaller
owner-operated fleet.
Challenges to the fluorspar market have continued, affecting
liquidity and resulting in acid grade fluorspar prices lower than
at the time of the Company's listing on the AIM Market.
A near mine regional exploration programme has been initiated.
The focus of this programme is to identify near term higher grade
feed for the plant. In support of this programme Witkop has
expanded its geological team.
Valley Deposit
As part of ongoing exploration work the Company has now drilled
thirty-two (32) confirmatory holes at the Valley resource located
nearby to the current processing plant. The Company is currently
evaluating these results with the preliminary analysis indicating
that the deposit warrants further testing and evaluation.
Financial
The Company remains well funded with cash and receivables at 30
June 2012 of US$20.7m (31 March 2012: US$20.9 million). The balance
includes restricted cash of US$2.2m and US$6.5m cash consideration
due from the sale of Fluormin's 20% interest in Kenya Fluorspar
Company Limited, which is due to be received on or before 30
November 2012.
Corporate
On 31 May 2012, Mr. Nicholas Davidoff resigned from the Board
and was replaced in the role of Non-Executive Chairman by existing
board member Mr. James Passin. Mr. Albert Gourley also resigned as
co-CEO, but remains on the Board as a non-executive. Mr. Mark
Bolton continues in the role of CEO.
The Board wishes to thank Messrs. Davidoff and Gourley for their
services in these respective roles.
During the Quarter the Company engaged advisers to assist it
with a review of the Witkop Mine. As part of the review process the
Company has continued to consider options to reduce costs whilst
continuing to consult with key local stakeholders. The process
remains ongoing and subsequent announcements shall be made
following the review.
About Fluormin Plc
Fluormin is a producer of acid grade fluorspar, an industrial
mineral widely used in the chemical and aluminum industries for the
making of products such as HFCs (Hydrofluorocarbons used as
refrigerant gases like Freon (TM)) and aluminum fluoride.
Contact Information
Fluormin plc
Mark Bolton, Chief Executive Officer +44 (0) 20 7034 7150,
mbolton@fluormin.com
Westhouse Securities
Martin Davison +44 (0) 20 7601 6100,
martin.davison@westhousesecurities.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGUBGRUPPGUW
Fluormin (LSE:FLOR)
Gráfico Histórico do Ativo
De Set 2024 até Out 2024
Fluormin (LSE:FLOR)
Gráfico Histórico do Ativo
De Out 2023 até Out 2024