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Fluormin Plc Q3 Update
LONDON, UK -- (Marketwire - April 26, 2012) - Fluormin Plc
(AIM: FLOR) ("Fluormin" or the "Company")
announces corporate, financial, operational and other
information pertaining to its third fiscal quarter.
Corporate and Financial Highlights for the Company for the
quarter ended 31 March 2012:
• Disposal of interest in Kenya Fluorspar Company, Limited
("KFC") for US$13 million;
• Receipt of US$1,000,000 dividend ($900,000 net of taxes)
from KFC on 16 April 2012;
• Receipt of US$6,500,000 (first) payment for KFC disposition
on 19 April 2012; and
• Group Cash and Current Receivable Balance as at 31 March
2012 of US$21 million (of which
US$1.8 million is restricted).
Operational Highlights for Sallies Limited (Sallies) for the
three months ended 31 March 2012
• Q3 produced tonnes 19,954
• Q3 shipped tonnes 12,079
• Average price of Q3 shipped tonnes* US$472
• Product inventory as at 31 March 2012 16,376
• Plant recovery 71.1%
* 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 Update
During the quarter, the Company employed contractor mining to
assist with mine stripping and blast drilling activities. As
a result of these efforts together the mine built a material
stockpile of ore. The infil RC drill programme has continued
which, together with a change in mining method, has resulted
in dilution being lowered and ROM headgrade improved from
7.8% to 8.6%. Nevertheless, costs increased substantially.
Agreements with contractors
were mostly terminated as at 31 March 2012 and operations
reverted to a reliance upon owner-operated equipment.
Registered in England and Wales Company Registration 05146673
Registered Office 25 Moorgate, London, EC2R 6AY
The outlook for fluorspar prices has forced management to
consider its options to further improve mine and plant
performance and the overall cost of production.
Disposal of Interest in KFC
During the quarter, the Company reached an agreement with the
majority owner of Kenya Fluorspar Company, Limited
("KFC") to sell its 20% interest in KFC for
US$13,000,000. The cash consideration was to be paid as to
US$6,500,000 on or before 30 April 2012 and the balance of
US$6,500,000 on or before 30 November 2012. The holding value
of the 20% stake of KFC is approximately US$2,275,000,
thereby realising a profit for the Company of approximately
US$10,725,000. The proceeds from the initial instalment of
US$6.5 million were received on 19 April
2012. In addition, the Company received a dividend from KFC
during the quarter of $1 million ($900,000 net of taxes).
Preliminary Results from Electronic Sorting
During the quarter, the Company retained Commodas Ultrasort
("Ultrasort") to conduct bulk testing of their
sorting technology on the Witkop ore. The testing, which was
conducted at Ultrasort's German facilities, considered a
number of process techniques including X-Ray Transmission
("XRT"), optical, infrared and near infrared.
Reflecting current crushing facilities, the testing was
conducted on -40+20mm and -20+10mm fractions. The best
results achieved to date were based on a sulphide sort using
an XRT sensor. Testing is now underway using ultraviolet and
laser sorting sensor technologies. These results are expected
later in the 4th quarter (ending June 2012).
A preliminary analysis of the test results received to date
suggest that the sorting technologies warrant further testing
and evaluation. No decision will be taken until all testing
is complete and a cost study has been undertaken.
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 gasses like Freon ™) and aluminum
fluoride.
Al Gourley, Co-Chief Executive Officer: (44)207 7556 0940, agourley@fluormin.com
Mark Bolton, Co-Chief Executive Officer: (44)20 7556 0940 ,
mbolton@fluormin.com
Martin Davison: (44)020 7601 6100 , martin. davison@westhousesecurities.com
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