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Valence Industries Ltd. (ASX:VXL) announced the suspension of processing activities at its South Australia-based Uley graphite site. The company will continue to prepare samples for sales and marketing efforts using existing stockpiled product at Uley.
Valence Industries Ltd. (ASX:VXL) announced the suspension of processing activities at its South Australia-based Uley graphite site. The company will continue to prepare samples for sales and marketing efforts using existing stockpiled product at Uley.
As quoted in the press release:
Valence Industries Managing Director Robert Mencel said the decision to suspend processing was taken after extensive consideration of the Company’s financial position. The suspension of processing onsite will reduce the Company’s operating costs by approximately $290,000 per month.
Mencel commented:
Production at the site has been ongoing at low levels for some months in order for us to achieve some inventory of on spec material to provide to customers for qualification purposes. The exercise has also been useful to clarify the issues with the existing plant and to assist in design parameters for the revised plant. To suspend processing at Uley is an extremely difficult decision however the existing production rate was uneconomic and count not continue.
The immediate focus is on rebuilding the capital of the Company and to re-establish it as a quality graphite producer.
Click here to read the full Valence Industries Ltd. (ASX:VXL) press release.