Finders sells first copper cathode at premium
Thursday, June 19 2014 - 02:33 AM WIB
ASX-listed copper producer Finders Resources Limited announced Thursday it has sold its first cathode from its 3,000-ton per annum capacity copper cathode solvent extraction and electrowinning plant (3Kt SX-EW plant) at the Wetar Copper Project in Maluku Province, Indonesia.
The company said in a statement that a total of 100 tons has been sold at a premium to the London Metals Exchange (LME) Grade A cathode pricing. Assays confirmed that the shipment was well within LME Grade A specifications. Premiums are expected to increase as Wetar cathode proves itself in the market, it added.
?As the cathode is fully processed, there are no restrictions on export and the shipment departed Surabaya on 18 June. Finders has received payment equal to 95 percent of the final invoice. The shipment will net approximately $690,000 when the sale is complete,? the company said.
Barry Cahill, Managing Director of Finders, said ?We are very pleased to complete our first copper sale. The healthy premium we received reflects the quality of the Wetar product. Copper sales will generate valuable cash flow as we continue the development of the Wetar project.?
Finders is currently completing the documentation of the funding for the expansion of the Wetar plant to 28,000tpa cathode capacity by 2015. The plant upgrade is expected to take 15 months to construct and has a 12-month payback period, according to results from a Bankable Feasibility Study undertaken by Finders.
Editing by Reiner Simanjuntak