- Strandline Resources (STA) expects to achieve production and cash flow during the fourth quarter for its Coburn mineral sands project in Western Australia
- While construction of the mineral separation plant (MSP) is finalised, Strandline plans to sell several shipments of heavy mineral concentrate from the WCP
- Upon completion of the MSP, the heavy metal concentrate will be transported to the plant for further processing
- The company says this strategy will accelerate cash flow and de-risk the ramp-up process
- Shares are trading 8.11 per cent higher today at 40 cents each on market close
Strandline Resources (STA) expects to achieve production and cash flow during the fourth quarter for its Coburn mineral sands project in Western Australia.
The company advanced construction of the wet concentration plant (WCP) and supporting infrastructure, with work now accelerating towards commissioning this month.
The WCP is designed to beneficiate heavy minerals and reject non-valuable, lighter minerals.
While construction of the mineral separation plant (MSP) is finalised, Strandline plans to sell several shipments of heavy mineral concentrate from the WCP.
It said this strategy will accelerate cash flow and de-risk the ramp-up process.
Upon completion of the MSP, the heavy metal concentrate will be transported to the plant for further processing.
Managing Director Luke Graham said the company is well positioned to take advantage of the current market conditions.
“There is a supply shortage of Strandline’s critical minerals through a lack of investment in recent years, mine closures, and declining grades of existing mines,” he said.
“Combine this with strong underlying demand and the sector is experiencing a very tight market.
“We can see this in the recent market prices of our products, which are running about 35 per cent higher than the pricing assumptions used in the Coburn DFS two years ago.”
Shares were trading 8.11 per cent higher today at 40 cents each on market close.