Firering Strategic Minerals (FRG) is moving away from its previous focus on lithium exploration in Côte d’Ivoire to capitalise on Zambia’s demand for quicklime in the copper industry. With lithium prices declining, FRG acquired a 20.5% stake in Limeco, a former Glencore quicklime project in Zambia, with an option to increase its stake to 45%. The Limeco plant is fully constructed and permitted, featuring eight kilns capable of producing 600-800 tonnes of quicklime daily once all are operational. Currently, Limeco has a 150,000-tonne limestone stockpile that is estimated to generate $33-$35 million upon processing. There is also a limestone quarry with a mineral resource of 73.7Mt, expected to support production for up to 30 years. An additional permit could potentially double this reserve, extending the plant’s lifespan to 60 years.
After completing the necessary upgrades, FRG has shifted Limeco’s energy source from heavy fuel oil to coal gasification, enhancing environmental and cost efficiencies. FRG anticipates quicklime production will commence by late 2024, with the aim of reaching full capacity by Q3 2025. Quicklime prices have remained strong, ranging from $160 to $218 per tonne, with forecasts suggesting this market will grow in the coming years, driven by demand in the copper industry. FRG’s experienced team, including CEO Yuval Cohen, has significant expertise in quicklime production through connections with Israel’s NEGEV Minerals.
Beyond quicklime, FRG’s revenue is already positive, thanks to aggregate sales from stockpiled materials and a two-year logistics service agreement generating $600,000 to $720,000 annually. Additional revenue could come from a concrete processing facility, which would use waste from quicklime production. Once operational, this plant could generate $20 million per year. The June 2024 capital raise of £2.13 million has kept Limeco’s redevelopment on track, while recent investments from board members and fund manager Nick Grace demonstrate investor confidence.
Zambia’s copper industry, a stable and pro-mining environment, presents an ideal market for Limeco’s quicklime. The copper sector forms 70% of Zambia’s revenue, with demand expected to double or triple. Given this high demand, FRG’s quicklime is likely to be absorbed domestically without needing to rely on export markets.
FRG’s shift to quicklime production is on time, on budget, and well-aligned with Zambia’s copper industry growth. Early revenue generation from logistics and aggregate sales, the transition to coal gasification, and the planned concrete processing plant position the company strongly for future growth. Investor interest remains high, as demonstrated by substantial BOD stock purchases and strategic fund management involvement.
Firering Strategic Minerals plc (LON:FRG) is an AIM-quoted mining company focused on becoming a near-term cash generating producer of Quicklime, through their Limeco Project in Zambia, whilst at the same time progressing with the exploration and development of their Atex Lithium Project, Côte d’Ivoire.
