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Suvo Strategic Minerals (ASX:SUV) increases production over Q4 FY21

Materials
ASX:SUV      MCAP $56.04M
30 July 2021 14:30 (AEST)

Source: SUV

Suvo Strategic Minerals (SUV) reported an increase in production from its Pittong kaolin operations during the fourth quarter of FY21.

SUV said production at the Victorian-based asset rose by 10 per cent quarter on quarter, with a total of 6544 tonnes of refined kaolin products produced.

Suvo released its full quarterly report for Q4 FY21 on Friday, noting Pittong generated $778,000 of earnings before interest, taxes depreciation, and amortisation (EBITDA).

The company said the operations had a strong sales pipeline ahead with a “noticeable increase in sales enquiries” recorded over the past few months.

SUV also advanced its White Knight Kaolin Project during Q4, releasing a scoping study for the asset in WA.

The study estimated White Knight would have a pre-tax net present value of $705 million and life of mine revenue of $3.6 billion as well as EBITDA of $2.3 billion.

Looking forward, SUV was anticipating high purity alumina testing on White Cloud to be completed shortly, as well as a maiden resource estimate for the company’s Nova Silica Sands Project.

The materials stock will also make a decision on whether or not it will significantly upgrade Pittong, after an evaluation was completed recently.

Cash-wise, SUV ended the June quarter with $4.98 million cash on hand and cash flow positive with a positive operating balance sheet of $584,000.

Shares in Suvo Strategic Minerals were trading steady at 16 cents each towards the close of market on Friday.

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