Stratmin Global Resources PLC First Sales Contract and Q2 Production Update (2899L)

TIDMSTGR

RNS Number : 2899L

Stratmin Global Resources PLC

03 July 2014

3 July 2014

StratMin Global Resources Plc

("StratMin" or the "Company")

First Sales Contract Signed and Q2 Production Update

StratMin (AIM: STGR), the graphite production and exploration company with assets in Madagascar, announces a production and sales update covering the second quarter of 2014.

The Company has signed a sales contract with an established graphite trading company, based out of the USA. Initial deliveries are for:

   1.    54 tonnes of +40 mesh 
   2.    19 tonnes of -40+80 mesh 
   3.    38 tonnes of +60 mesh

Further sales contracts are expected and will be subject to separate announcements.

Quarterly production numbers are as follows

 
 Mesh Size   Tonnes   Avg. Carbon Content 
----------  -------  -------------------- 
 +40         105.0    90.30% 
----------  -------  -------------------- 
 +60         54.5     89.41% 
----------  -------  -------------------- 
 +80         17.0     87.05% 
----------  -------  -------------------- 
 -80         18.5     89.60% 
----------  -------  -------------------- 
 Total       195.0    89.70% 
----------  -------  --------------------

While the recent sales negotiations were ongoing, management took the decision to reduce production in May and June in order to avoid accumulating stock until confirmation, through receipt of sales orders, of the marketability of the Company's product. Now sales channels are being secured, production will be fine-tuned and increased to meet demand and maximise profitability.

Volume capacity at the plant remains at 120 tonnes per month. Delivery of the upgraded de-watering system to Madagascar is expected towards the end of July. Installation will be complete, subject to smooth customs clearance by mid-August, increasing capacity at the plant to more than 300 tonnes per month.

Further technical updates are being made at the mine to improve grade consistency. While current grade levels are satisfactory, the Company is working on increasing these in order to open up new potential markets and achieve the best price possible for its products.

Manoli Yannaghas, Managing Director, said;

"I am very pleased with the Company's progress. We have swiftly proven our ability to sell a premium product at a confidential price that reflects its quality, following the commencement of commercial production, as recently as the start of this quarter.

"We expect new sales contracts to be the start of longer term relations with these customers."

The Company will continue to update the market on production and sales each quarter.

For further information please visit www.stratminglobal.com or contact:

 
 StratMin Global Resources Plc                       +44 (0) 20 3691 
  Manoli Yannaghas (Managing Director)                6160 
 Strand Hanson (Nomad & Financial Adviser)           +44 (0) 20 7409 
  James Spinney / Ritchie Balmer                      3494 
 Hume Capital Securities Plc (Sole Broker)           +44 (0) 20 3693 
  Jon Belliss / Abigail Wayne                         1470 
 Blytheweigh (Financial PR)                          +44 (0) 20 7138 
  Tim Blythe / Halimah Hussain / Camilla Horsfall     3204

-ends-

This information is provided by RNS

The company news service from the London Stock Exchange

END

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