TIDMFLOR

RNS Number : 9281X

Fluormin PLC

22 February 2012

Fluormin plc

("Fluormin" or the "Company")

OPERATIONAL Update

LONDON, UK -- (Marketwire - Feb. 22, 2012) - Fluormin (AIM: FLOR) provides the following operational update in relation to the ongoing ramp up of operations at Witkop, the Company's principal fluorspar operation.

During Q2 (ending 31 December 2011) Witkop faced several operational challenges in achieving its targeted name plate production. These have included water shortages, power outages and lower ore grade to the plant, each of which impacted on production. In addition, production was interrupted by its annual 2 week shutdown for maintenance announced in the Company's statement on 19 October 2011.

The outlook for further water shortages and power outages has improved since 31 December 2011. In relation to the lower ore grade to the plant, the Company has embarked on an extensive infill RC drill programme to improve mine planning and grade control. The Directors will monitor ore grade during Q3 to ascertain the success of these initiatives.

Whilst plant performance has been satisfactory, plant availability has continued to impact production post 31 December 2011. Recent changes in the management of the engineering and maintenance function are anticipated to improve plant availability.

Q2 Operational Highlights for Sallies Limited to 31 December 2011

 
 Produced tonnes                        15,895 
 Shipped tonnes                         16,754 
 Average price of Q2 shipped tonnes*    US$466 
 Product inventory as at December 
  31 2011                               8,859 
 Mill Feed Grade                        8.1% 
 Plant recovery                         71.5% 
-------------------------------------  -------

* 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).

Group Cash Balance as at 31 January 2012 was US$10.1 million (of which US$2 million was restricted). Significant cash payments during the period included the completion of the Sallies Limited scheme of arrangement (approx. $4.7m) and the mandatory offer to Sallies debenture holders (approx. $3.5m). In addition, $1m was advanced to FluorOne Trading Limited, the fluorspar marketing company 49% owned by the Company, as a loan.

Upgrade Evaluation

The Company has commissioned a study to evaluate the potential to increase the ore head grade into the milling circuit using electronic ore sorting. A five tonne bulk sample is scheduled to be tested in Germany during March.

In addition to potentially increasing the head grade into the milling circuit, the study will evaluate an expansion of the crushing circuit in order to increase overall production capacity. The initial results of the study are anticipated to be available in the Quarter ending 30 June 2012.

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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCTTMATMBITBJT

Fluormin (LSE:FLOR)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Fluormin Charts.
Fluormin (LSE:FLOR)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Fluormin Charts.