Freehill Mining Limited (ASX:FHS) has confirmed the initial 2,500 tonne magnetite delivery to Compania Minera Del Pacifico S.A. (CMP) from its 100%-owned Yerbas Buenas magnetite mine in Chile.
The delivery constitutes part of an off-take agreement with CMP – a subsidiary of Chile’s largest iron ore producer – under which Freehill will deliver an initial total of 24,000 tonnes of magnetite concentrate.
Daily deliveries remain ongoing as part the agreement, and overground transport logistics operated efficiently throughout the first two weeks of daily sales to CMP.
Each delivery was executed on time, with confirmation of receipt by the end-customer. The efficient delivery processes can be attributed to the extensive groundwork carried out by Freehill in cooperation with CMP, including detailed transport approvals from local regulators.
Transport logistics plans also required effective solutions for inventory management and delivery infrastructure, including trucking procurement and mapping of transport logistic routes. With established delivery processes now formally in place, the company has successfully de-risked its operations and converted Y.B. from an exploration project into a cash-generating asset.
While the immediate focus is to ensure the smooth delivery of the balance of the initial 24,000 tonne offtake with CMP, Freehill’s focus is to secure additional supply to CMP and lock in additional sales contracts with new customers in the months ahead, as it consolidates its position
“Following the confirmation of our sales contract with CMP, the establishment of transport and logistics networks that met the highest standards of safety and efficiency were made a top priority by the Freehill executive team,” CEO, Paul Davies, said.
“In that context, it’s pleasing to confirm that our end-to-end logistics strategy is working efficiently, with un-disrupted daily deliveries of magnetite concentrate product to our end-customer.
“These efficient operations are a testament to the hard work of the Freehill management and operational staff and set the company up to further increase revenues and free cash flow generation in the months ahead from existing supply agreements, and potentially new ones that we are negotiating.”
For further information please visit: https://freehillmining.com/
