Mineral exploration and mining company Element 25 [ASX:E25] has today given a summary of its quarterly activities and highlights.
For the group’s Butcherbird Manganese Operations in WA, Element has said production has increased 22% on the last quarter and sales have exploded by 218% to 62.4kt, helping towards positive cash flow.
HPMSM Feasibility Studies are also in the final stages of completion and peer review, which will be due for release this month.
Shareholders for E25 were upvoting the group’s share price by 7%, and though E25 may have gone up more than 11% in the week, in the year it has slipped by 26% over the past 52 weeks:
Source: TradingView
Element 25 boosts production
Explorer of manganese, copper, and gold deposits in Western Australia and operator of the Butcherbird Manganese Project — home of Australia’s largest onshore manganese resource — E25 has shared highlights for the quarter just ended.
Element reported $13.27 million in customer sales over the quarter and $26.8 million in the last nine months.
Considering running expenses, developments, production, and staffing costs, the group is in front by $648,000 in the quarter.
Taking financing into account, the group appears well supported, and ended the quarter with cash and equivalents of $37.56 million.
For the group’s Butcherbird Manganese Operations in WA, Element has said production has increased 22% on the last quarter, and sales have exploded by 218% to 62.4kt thanks to inventory destocking and overall boosting positive cash flow for the quarter.
Speaking of Butcherbird, Element said it has now installed the secondary feeder, which has helped mitigate a bottleneck of front-end feed rates in the processing plant, instantly improving material throughput.
March’s production saw an achievement of 24-hour record production of 1,859t, well above the 1,000 tpd (tonnes per day) nameplate.
The group’s cash margin per tonne has seen a vast boost, increasing production rates after the secondary feeder was installed, as unit cash costs also reduced, thanks to higher volumes:
Source: E25
Outside of Butcherbird, the group also touched on the High Purity Manganese (HPMSM), with the Feasibility Studies reaching final stages, reviews of which will be due for release this month.
In the next quarter, Element expects to evaluate engineering constriction contractor proposals, as well as permitting applications and site surveys.
The group also hopes to begin major packages of engineering designs and obtain a front-end engineering design contract.
This project has already seen agreements signed with global vehicle manufacturer Stellantis for materials designed to build Stellantis’ EV batteries.
Element explained that its HPMSM is calculated to produce around 1.7kg of CO2 for every 1kg of HPMSM, approximately 67% lower than current producers in China and up to 26% lower than closest non-China competitors, optimised.
E25 also has up to $30 million in funding over three years as it continues development of its battery-grade, high-purity manganese, thanks to a recent At-the-Market Subscription Agreement and Funding Facility.
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Regards,
Mahlia Stewart,
For The Daily Reckoning Australia
