Australian minerals miner Strandline Resources [ASX:STA] has announced it has just finished its sixth and largest shipment of heavy mineral concentrate (HMC) which weighed 11,000 tonnes and was valued at $12 million CIF.
STA opened trade this morning at a 6% decrease in share value. However, after lunchtime, the minerals mining stock drifted towards a 1% gain.
Worth 30 cents a share in the early afternoon on Thursday, STA is still down by 14.5% in the month and is down 10% in its sector and 12% against the wider market:
Source: TradingView
Strandline ships bigger HMC load and reaches new total export milestone
Strandline has now exported a total of 57,000 tonnes of the HMC product since it opened its WA-based Coburn Mineral Sands Project to commercial production back in November last year.
The HMC mined by Strandline contains critical Rare Earths Elements (REE) such as the likes of titanium, zircon and monazite.
This new milestone has been achieved despite a few commissioning issues that were flagged earlier for the group. Among them included some equipment failures and challenges around plant availability.
However, despite these challenges, the miner managed to conduct mineral processing at the wet concentrate plant throughout the month of May.
STA has claimed total revenue of $60 million, which should provide enough working capital for the miner to jump-start its planned operations at Coburn.
The HMC miner will be advancing its equipment and improving its plan availability, as well as bumping up its mine planning as all part of its conceived production ramp-up following the distribution of that capital.
Strandline will also be looking to increase its mineral resource recoveries within final product streams while developing its mineral separation plans (its MSP).
STA will be dispatching its HMC product at the rate of one shipment a month. It will also be looking to provide more details on these shipments in its upcoming quarterly reports from the start of fiscal 2024.
In April, Strandline presented the highlights for its March quarter at the Coburn mineral sands project. The group completed four HMC shipments by the quarter-end of 35,491 tonnes of wet product which generated $36 million CIF in sales revenue.
The fifth shipment also produced an additional 10,550 tonnes of wet HMC product, generating a further $11.7 million to the company’s balance sheet and bringing the total to $48 million.
The miner had consolidated cash of $50.5 million by the end of the March quarter, with $15 million remaining undrawn in its NAB Working Capital Facility.
Source: STA
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