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- Suvo Strategic Minerals (SUV) successfully completes a plant upgrade optimisation review of its Pittong operation in Victoria
- The review confirms the plant capacity expansion will be capable of delivering a nameplate processing capacity of around 60,000 tonnes per annum
- Following the review, Suvo has reduced its forecast all-in sustaining costs for the project by 39 per cent to $359 per tonne,
- Suvo Chairman Henk Ludik says by identifying and upgrading vital plant equipment, the company has doubled forecast production and lifted predicted EBITDA four-fold
- Shares in Suvo are up 9.52 per cent to 6.9 cents at 11:53 am AEST
Suvo Strategic Minerals (SUV) has successfully completed a plant upgrade optimisation review of its Pittong operation in Victoria.
The review confirmed the plant capacity expansion would be capable of delivering a nameplate processing capacity of around 60,000 tonnes per annum.
Moreover, Suvo has cut its forecast all-in sustaining costs by roughly 39 per cent to $359 per tonne and predicted earnings before interest, tax, depreciation and amortisation (EBITDA) for the project of $8.3 million in the 2024 financial year.
Executive Chairman Henk Ludik said the strategic review unlocked “tremendous value” for the company and its shareholders.
“By identifying and upgrading vital plant and equipment, it has resulted in the opportunity to lift production and reduce operating cost at a modest capex and will translate into a doubling of production and a four times lift in forecast EBITDA,” Mr Ludik said.
“Study work leading to the plant upgrade has enabled the company to validate the growing demand for quality hydrous kaolin globally.
“This gives the company great confidence in unlocking other kaolin-related markets including Metakaolin applications for emerging opportunities in carbon-reducing green cement.”
For the 2022 financial year, the total production from Pittong was around 25,700 dry tonnes compared to 25,000 for FY21, which Suvo said displayed consistency in the plant operations.
The plant upgrade and optimisation come at a capital cost of $2.3 million, which includes the costs required to upgrade and replace critical equipment at the wet and dry plant in order to meet the nominal design capacity of nine tonnes per hour.
Suvo said it expected to achieve significant efficiencies in processing costs by lowering its power and gas usage per tonne produced and gaining economies of scale with its fixed costs.
Shares in Suvo were up 9.52 per cent to 6.9 cents at 11:53 am AEST.
