Materials

Strandline Resources ships first WA-made mineral concentrate from Coburn project at $6.1m

Tue 20 Dec 22, 11:00am (AEST)
Shipping container logistics exports imports
Source: Unsplash

Key Points

  • Strandline Resources was the top gainer on the market in the first hour of trade, up 5% to 42c
  • The $526m market cap company has successfully made its first shipment on-time and at stronger prices than expected
  • Company now focusing on expanding production capacity

In the first hour of trade, which has been characterised by selling after a soft night on Wall Street, the top gainer on the market was WA-focused Strandline Resources (ASX:STA)

The $526m market cap company is up to 42c as it successfully ships its first mineral concentrate from the WA Coburn Mineral Sands Project, which is backed in part by the Commonwealth’s Northern Australia Infrastructure Facility (NAIF).

6,500 tonnes of mineral concentrate (containing materials such as zircon, titanium and the radioactive element monazite) was loaded at Geraldton port, valued at a total of approximately $6.5m. 

The company expects to see the cash in its accounts by the end of this week; a sum which exceeds revenue expectations made in the project’s Definitive Feasibility Study (DFS). The company points towards strong demand. 

The buyers will pay for the Cost (of shipping), Freight, and insurance; in an arrangement known as CIF, generally viewed as highly desirable by shareholders of sellers. 

Unlocking the next chapter

“Achieving production and cashflow is a major milestone for Strandline and sets us up for our next chapter of strong growth,” chief executive Luke Graham said. 

“We are now preparing for a second shipment while also completing construction and commissioning of the MSP, which will in turn drive further increases in cashflow.”

Risks remain 

Strandline on Tuesday also revealed a number of risks remain over its head with regards to developing Coburn, including: 

  • Health, Safety, and Environment risks 

  • Inclement weather (the wet season affects the north of WA)

  • “Contractual claims and disputes” 

  • Commissioning ramp-up risks 

  • Contractor performance 

Strandline's six month charts
Strandline's six month charts

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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