Firering Strategic Minerals, listed on the AIM, has entered into an agreement with a global commodity trading firm that will establish a new logistics services revenue stream for its advanced quicklime project in Zambia, known as Limeco. Firering currently owns a 20.5% stake in Limeco Resources, with the potential to increase this to 45%.
Limeco, once fully operational, is expected to become the largest quicklime operation in Zambia, designed to meet the growing demand from the Copperbelt’s expanding copper production industry. Historical investments in the project have surpassed $100 million. The new agreement is anticipated to generate between $600,000 and $720,000 annually, providing support for the quicklime operations, which are scheduled to commence production in the fourth quarter of this year.
This deal is particularly significant as it enables Limeco to generate positive operational cash flow even before quicklime production begins. Firering also mentioned ongoing negotiations with major copper producers for quicklime sales. In October 2023, Limeco started aggregate sales, and more offtake agreements are expected as the project progresses in the coming months.
The CEO of Firering, Yuval Cohen, expressed enthusiasm about the future, emphasising that the immediate cash flow from the logistics services agreement, along with revenue from aggregate sales, aligns with Limeco’s strategy to diversify its income streams. This approach will further support the development of the quicklime project as it approaches its first production later this year. Cohen reaffirmed the company’s commitment to maximising shareholder value.
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.
