Suvo Strategic Minerals Limited (ASX: SUV) has successfully completed a kaolin plant upgrade optimisation review on its 100% owned Pittong Operation in Australia.
“The completion of the strategic review of the Pittong operations is a major milestone, unlocking tremendous value for Suvo and its shareholders,” Suvo Executive Chairman Henk Ludik said.
“By identifying and upgrading vital plant and equipment it has resulted in the opportunity to lift production and reduce operating cost at a modest capex and will translate into a doubling of production and a 4x lift in forecast EBITDA.
“Study work leading to the plant upgrade has enabled the company to validate the growing demand for quality hydrous kaolin globally. Pittong is the only producer of hydrous kaolin in Australia. This gives the company great confidence in unlocking other kaolin related markets including Metakaolin applications for emerging opportunities in carbon reducing green cement.
“The company is of the firm opinion that if the Federal Government are to meet its 2030 carbon reduction targets, green cement will be an integral part of the plan to meet those targets.”
Shortly after the company completed its Executive and Board transition in late March 2022, a plant upgrade optimisation review commenced. This was a critical work stream for Suvo, and its outcomes have provided a high level of confidence that all facets of the upgrade were methodically analysed and verified.
The independent review has confirmed the plant capacity expansion will be capable of delivering a name plate processing capacity of ~60,000 tonnes per annum under certain operating conditions, with a forecast completion date of end Q3 FY 2023 (Q1 CY 2023), most of which the company intends to satisfy by the forecast completion date.
For the year ended 30 June 2022 (12 months), total production was ~25,700 dry tonnes, compared to ~25,000 dry tonnes for the 2021 FY (12 months). The production rate for the 2021 and 2022 financial years display the consistency of the plant operations on an annual basis and following the findings from the plant upgrade optimisation review, the company has a high degree of certainty that nameplate capacity of ~60,000 tonnes per annum could be achieved through a combination of equipment upgrades and process optimisation at its Pittong operations, subject to the plant being continuously operated 24/7.
The plant upgrade and optimisation comes at a capital cost of A$2.3 million.
For further information please visit: https://suvo.com.au/projects/pittong-operation/
