Mining campaign extended due to increased demand
Keras Resources plc ('Keras' or 'the Company')
Mining campaign extended at Diamond Creek Phosphate Mine to satisfy increased demand
Keras Resources plc (AIM: KRS) announces that it will extend its summer mining campaign at its high-grade Diamond Creek organic phosphate mine, ('Diamond Creek') in Utah, USA. A very encouraging marketing campaign in California, where a substantial percentage of Keras' phosphate product is currently sold, resulted in a material increase in committed sales, in particular for the Company's coarse #10 mesh product, over the winter season (from November 2022 through to May 2023). This increased demand represents an increase of approximately 40% in expected monthly sales to 700 tons from previously announced monthly sales figures. To ensure that sufficient product in this size fraction is available to meet committed demand over the winter season, Keras is extending mining operations at Diamond Creek to the end of the summer season to produce an additional 2,500 tons of run of mine ore for downstream milling to supplement ore already in stock.
Graham Stacey, CEO of Keras, commented, "Demand for our high-grade organic rock phosphate continues to grow encouragingly as evidenced by the significant increase in expected August 2022 sales of 500t to physical deliveries of 700t, largely to distributers in the Central California Valley. Firm commitments for similar monthly tonnages through to May 2023, from these repeat clients, has resulted in the need for additional run of mine ore to ensure product availability through to the early spring planting season in 2023. We will now extend our mining campaign to meet this demand."
"The worldwide pricing of synthetic fertilizers has seen unprecedented growth over the last 12 months, due in large part to geopolitical instability impacting global supply of feed elements for synthetic fertilizers which has seen organic fertilizers gaining market share in the global market. We believe that fertilizer market demand fundamentals will remain robust and we see the potential for real price growth to support increasing margins in our market segment going forward."
The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the publication of this Announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
For further information please visit www.kerasplc.com, follow us on Twitter @kerasplc or contact the following:
Graham Stacey / Annabel Redford
Keras Resources plc
Nominated Adviser & Joint Broker
Ewan Leggat / Charlie Bouverat
Damon Heath / Erik Woolgar
Financial and Corporate Communications
SP Angel Corporate Finance LLP
Shard Capital Partners LLP
+44 (0) 20 3470 0470
+44 (0) 207 186 9900
+44 (0) 774 884 3871
Keras Resources (AIM: KRS) wholly owns the Diamond Creek organic phosphate mine in Utah, US. Diamond Creek is one of the highest-grade organic phosphate deposits in the US and is a fully integrated mine to market operation with in-house processing facilities. The operation produces a variety of organic phosphate products that can be tailored to customer requirements for fertiliser.
The Company is focused on continuing to build market share in the fast-growing US organic fertiliser market and build Diamond Creek into the premier organic phosphate producer in the US.
Additionally, Keras holds an 85% interest in the Nayéga manganese project in Togo, which hosts an 8.4 million tonne manganese oxide Ore Reserve in northern Togo, held through Togolese subsidiary Société Générale des Mines SA (SGM).