Orpheus makes trial shipment of 5,000 tons coal
Monday, November 12 2012 - 12:44 AM WIB
ASX-listed Orpheus Energy announced that a 5,000 ton barge carrying ADK coal has successfully been shipped out of the SKJM port and sold to an Indonesian trading group.
The coal has specification of 5500-5300 Kcal/Kg (ADB) CV and low in ash and sulphur.
This shipment is a trial shipment for the trading group, which is negotiating with Orpheus to enter into a regular supply contract.
Executive Chairman Wayne Mitchell said ?We are very pleased to report to shareholders that our ADK mine is operational again and that we are selling coal. Despite the current challenging trading conditions, Orpheus is still able to make a profit on sales, and as we ramp up production to our target 50,000 tons per month, the net margin is expected to increase. We are on target to becoming a cash-flow positive company in the near term?.
This trial shipment earns the ADK Joint Venture a $5 per ton net margin.
Long-term and spot contracts are under negotiation for the current 50,000+ tons stockpile and ongoing production.
The SKJM port is located approximately 6km from the ADK coal mine.
Orpheus expects to achieve its initial production target of 50,000 tons per month.
Editing by Adianto P. Simamora