Firering inks logistics revenue agreement with commodity company

5th Aug 2024 11:56

(Sharecast News) - Firering Strategic Minerals announced a significant development at its advanced quicklime project in Zambia on Monday, with the signing of a logistics services revenue agreement with an unnamed multinational commodity trading company.

The AIM-traded firm said the two-year agreement was expected to generate annual revenue of between $0.6m and $0.72m, providing positive operating cash flow at Limeco even before core quicklime production starts in the fourth quarter.

Firering described the agreement as a key milestone, as the revenue would support the start of core quicklime commissioning and production later in the year.

Additionally, negotiations were ongoing with major copper producers for the sale of quicklime, further enhancing the project's potential.

Aggregate sales, which started in the fourth quarter of 2023, were expected to increase as operations ramped up, with more offtake agreements expected in the coming months.

"The immediate cash flow from the logistics services agreement in addition to aggregate revenue aligns with Limeco's multi-revenue strategy and supports the development of its core quicklime project due to start first production towards the end of the year," said chief executive officer Yuval Cohen.

"We are excited about the opportunities ahead and remain committed to maximising value for our shareholders."

At 1123 BST, shares in Firering Strategic Minerals were down 1.75% at 2.8p.

Reporting by Josh White for Sharecast.com.