Suvo Strategic Minerals Limited (ASX: SUV) has signed a sales agreement with Fagron, a global supplier of medications to pharmacies, hospitals, clinics, and directly to patients. The hydrous kaolin to be supplied under this agreement, totaling 300 metric tonnes over a three-year period, will be sold to Central de Drogas, SA de CV, a wholly owned subsidiary of Fagron and the leading supplier of raw materials to compounding pharmacies and the pharmaceutical industry in Mexico.
Interim chief executive officer Bojan Bogunovic commented: “Achieving a 14% growth in sales in the December 2023 quarter and subsequently signing up five new customers from the start of the 2024 calendar year, is testament to the work of the sales and marketing team.
Since returning Suvo’s Pittong plant back to name-plate processing capacity of 60,000tpa, the company has focused on strengthening its sales and marketing efforts in Asia to fully leverage this increase in capacity. Accordingly, the company has appointed three key sales personnel, all based in Asia, during H1 FY 24. This newly appointed team has a combined experience of more than 60 years in the selling and marketing of kaolin, having previously worked for large mineral and chemical companies such as Imerys S.A and BASF.
Fagron is the company’s fifth new customer in the 2024 CY, which pleasingly, suggests that our sales and marketing efforts are coming to fruition. The company has built a strong pipeline of potential customers across Asia Pacific with more than 20 end-users currently testing Suvo’s kaolin for suitability across various industries and applications.
The pharmaceutical industry commands premium pricing for the company’s premium products as we look to work with Fagron and expand sales beyond the Americas and into the European pharmaceutical market. Other significant buyers of kaolin in Asia, some of which occupy end user markets where orders are measured in the thousands of tonnes for more industrial applications, continue to test the Pittong kaolin for quality and suitability and our primary goal remains to continue increasing sales following the recent plant upgrade at Pittong.” Added Bojan.
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