Operational Update
19 May 2009 - 6:15PM
UK Regulatory
TIDMBRR
RNS Number : 4819S
Braemore Resources PLC
19 May 2009
Braemore Resources Plc
("Braemore" or "the Company")
Operational Update
Braemore Resources (AIM: BRR; JSE: BRE), together with its technology partner
Mintek, has achieved the stated research and development programme objective of
developing a proven, industry-leading technology for the smelting of high chrome
Platinum Group Metals ('PGM') concentrates. Braemore is now at the point in its
business strategy, which will allow the company to transform from a technology
development company into a commercially viable entity on the back of its
technology.
The conclusion of the research into the PGM refining process, to complement the
ConRoast smelting process, will enhance the commercial strength of the smelting
process and is the final stage required to complete the research and development
phase of the company.
The company has also undertaken to restructure the demonstration smelting
facility in response to current metal prices and a strengthening South African
Rand ("Rand".). The company has experienced working cost increases in US Dollar
("Dollar") terms of some 12.5% within an eight week period whilst Dollar metal
prices have remained static. This has put significant pressure on the company's
working capital as it accelerated the conclusion of its research and development
programme. The restructuring of the demonstration facility is targeted towards
significant reductions in operating costs and reviewing the process units to
better align with the proposed refining process. The process restructuring will
be undertaken as swiftly as possible to minimise interruption to production at
the demonstration unit. The refining process, once implemented, will increase
the margins of the process to ensure strong commercial viability even at times
of a strong Rand and low metal prices.
The company has entered into discussions with various parties to support the
financing of the commercialisation strategy both for the development capital to
build a next stage ConRoast facility with refining capability as well as
addressing the Company's short term working capital needs. In addition the
company is well advanced in forming joint ventures with existing and near-term
producers of PGMs to secure feed material for a fully commercial smelting and
refining facility.
Leon Coetzer, Chief Executive Officer, stated that Braemore is fulfilling its
potential. "We have steadily met our targets and we are poised for expansion.
Funding the commercialisation of ConRoast and refining process is key, and we
believe that the success of the development work done to date with the
demonstration smelter showcases our ability to address the financing, smelting
and refining challenges within the platinum industry."
Enquiries:
Braemore Resources Plc
Leon Coetzer, Chief Executive Officer
+27 11 557 6413
WH Ireland: (Nomad and Joint Broker)
James Joyce
+44 207 220 1666
Mirabaud Securities: (Joint Broker)
Rory Scott
+44 207 878 3360
Qinisele Resources: (RSA Corporate Advisers)
Dennis Tucker
+27 82 492 4957
Russell and Associates: (RSA Public Relations)
Nicola Taylor/Charmane Russell
+27 11 880 3924
Walbrook PR: (UK Public Relations)
Louise Goodeve/Leah Kramer
+44 207 933 8780
Sasfin: (RSA Corporate Sponsor)
Sharon Owens
+27 11 809 7762
Notes to Editors:
Braemore Resources offers investors an attractive opportunity to enter into the
PGMs and nickel business, initially through the mid-stream processing of these
metals and, in time, through mine-to-market production opportunities.
Braemore Resources is principally involved in evaluating, establishing and
operating independent facilities for the roasting, smelting and refining of
concentrates containing PGM and associated base metals and for the reclamation
and processing of sulphide nickel tailings. Diversified both geographically and
in terms of product, the company is located in two key mining regions - Braemore
Nickel in Western Australia and Braemore Platinum in South Africa. Braemore's
access to proprietary technology, and in particular the Mintek ConRoast
technology, which has successfully operated at test plant level, makes the
company well-positioned to become a significant player in the burgeoning South
African PGMs sector, offering a more cost-effective, environmentally friendly
and accessible smelting option to many junior mining companies. Unlike
conventional smelters, ConRoast is unaffected by the high-chrome content ores,
which are increasingly being mined.
Braemore's management team, in South Africa and Australia, bring with them
impressive credentials in their respective sectors, combined with a Board that
has experience in metals processing, financial and commodities markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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