Share Search
Visit the Share Search
Keras flags delay to new Diamond Creek processing plant
29th Mar 2021 15:18
(Sharecast News) - Mineral resource company Keras Resources reported progress at the Diamond Creek high-grade direct shipping ore organic phosphate mine in Utah on Monday, reporting "encouraging results" from the marketing campaign over the winter.
The AIM-traded firm's 51% subsidiary Falcon Isle Holdings is the owner of Diamond Creek.
It said the results from the Falcon Isle marketing campaign over the winter period had reinforced management's confidence that 2021 sales targets would be met.
Covid-19 travel restrictions, which prevented the plant manufacturer's engineer to be on site during construction, had slowed the construction timeline, however, with the new processing plant now set to be commissioned in the second quarter.
Keras said that, due to the "significant demand" for both milled and granulated product, Falcon Isle had extended its third-party toll treating agreements to ensure that product was available during the final stage of the plant construction.
The increase in run-of-mine production during the 2020 mining campaign had ensured that there was sufficient plant feed until mining resumes in the spring, the board confirmed.
Once installed, the increased plant capacity and the expected associated economies of scale would reduce the unit cost and bolster margins going forward, it added.
"The trip to Togo and Utah has been extremely constructive and has proved how important face-to-face management interaction is in our industry," said chief executive officer Russell Lamming.
"Notwithstanding the significant impact that the pandemic has had, our US team has done a great job in both maintaining operational output and building value at the Diamond Creek operation."
Lamming said that despite the "short delay" in the commissioning timetable, the firm's management believed sales targets of 10,000 tons for 2021 were still achievable.
"The demand for our range of products has been very encouraging and we are looking forward to a very busy period as we move into spring and the recommencement of mining operations.
"We look forward to delivering further news regarding the commissioning of the processing plant and our 2021 production schedule in due course."
At 1300 GMT, shares in Keras Resources were down 3.67% at 0.12p.
The AIM-traded firm's 51% subsidiary Falcon Isle Holdings is the owner of Diamond Creek.
It said the results from the Falcon Isle marketing campaign over the winter period had reinforced management's confidence that 2021 sales targets would be met.
Covid-19 travel restrictions, which prevented the plant manufacturer's engineer to be on site during construction, had slowed the construction timeline, however, with the new processing plant now set to be commissioned in the second quarter.
Keras said that, due to the "significant demand" for both milled and granulated product, Falcon Isle had extended its third-party toll treating agreements to ensure that product was available during the final stage of the plant construction.
The increase in run-of-mine production during the 2020 mining campaign had ensured that there was sufficient plant feed until mining resumes in the spring, the board confirmed.
Once installed, the increased plant capacity and the expected associated economies of scale would reduce the unit cost and bolster margins going forward, it added.
"The trip to Togo and Utah has been extremely constructive and has proved how important face-to-face management interaction is in our industry," said chief executive officer Russell Lamming.
"Notwithstanding the significant impact that the pandemic has had, our US team has done a great job in both maintaining operational output and building value at the Diamond Creek operation."
Lamming said that despite the "short delay" in the commissioning timetable, the firm's management believed sales targets of 10,000 tons for 2021 were still achievable.
"The demand for our range of products has been very encouraging and we are looking forward to a very busy period as we move into spring and the recommencement of mining operations.
"We look forward to delivering further news regarding the commissioning of the processing plant and our 2021 production schedule in due course."
At 1300 GMT, shares in Keras Resources were down 3.67% at 0.12p.