Firering Strategic Minerals announced a significant development at its advanced quicklime project in Zambia with the signing of a logistics services revenue agreement with an unnamed multinational commodity trading company. The AIM-traded firm reported that the two-year agreement is expected to generate annual revenue between $0.6m and $0.72m. This will provide positive operating cash flow at Limeco even before the core quicklime production begins in the fourth quarter. Firering emphasised that the agreement is a key milestone, as the revenue will support the start of core quicklime commissioning and production later this year.
Additionally, ongoing negotiations with major copper producers for the sale of quicklime further enhance the project’s potential. Aggregate sales, which began in the fourth quarter of 2023, are anticipated to increase as operations ramp up, with more offtake agreements expected in the coming months. CEO Yuval Cohen highlighted that the immediate cash flow from the logistics services agreement, in addition to aggregate revenue, aligns with Limeco’s multi-revenue strategy. This strategy supports the development of its core quicklime project, which is set to start production towards the end of the year. Cohen expressed excitement about the opportunities ahead and reaffirmed the company’s commitment to maximising shareholder value.
The strategic agreements and ongoing negotiations underscore Firering’s dedication to advancing its quicklime project and securing its financial stability.
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.
