Fox Marble expands portfolio in Balkans

4th Jul 2013 12:08

AIM-listed quarrying group Fox Marble has expanded its portfolio with new quarry agreements in Macedonia and Kosovo. Fox has secured a 20-year agreement to operate a rare white sivec quarry in Prilep in southern Macedonia, with an irrevocable option to extend the period for a further 20 years thereafter.Fox will receive 25% of the gross revenue from the sale of all block marble from this quarry and will incur only the costs of ongoing extraction and, once its production plant is operational, cutting and polishing.The quarry is currently closed and the local owner, now partner, has agreed to take on the cost of its equipping and reopening.The Prilep quarry contains the rare and coveted white sivec marble, currently available from only one other quarry in the world, which is located nearby and sells the marble for between €300 and €1320 per tonne depending on the grade. A cubic metre of white sivec marble weighs 2.8 tonnes.Fox Marble has also acquired the rights to develop and operate the Malesheva quarry in central Kosovo from a local operator, with a similar 20-year licence and irrevocable option to double this thereafter. Fox will pay a royalty of 21% on net revenue generated from the sale of the grey-white and cream block marble, which is similar in appearance to the popular crema marfil marble. Chief Executive Chris Gilbert said: "White Sivec is one of the most desirable marble types in the world today and we believe that demand for the marble will be strong. "Our rights extend to 350 hectares across the stone body in this location and our long term tenure will amply reward our shareholders over time."Shares in Fox Marble were unmoved at 17.5p at 12:15 on Thursday.OH