Meridian Mining SE (TSXV:MNO) revealed positive 2017 production and sales results for its high-grade manganese project located in the state of Rondônia, in Northwestern Brazil.
Highlights are as follows:
- Produced 51,580 tonnes of manganese product for year ending December 31, 2017
- Sold 48,943 tonnes of manganese product for year ending December, 31, 2017
- Completed the upgrade and commissioning of the Jaburi Plant
As quoted in the press release:
Meridian produced 16,786 tonnes of manganese product in the fourth quarter of 2017 versus 13,326 tonnes in the fourth quarter of 2016, a 25% increase in production over the prior year period. Production for 2017 totalled 51,580 tonnes compared with 34,622 tonnes in 2016, a 48% increase over the prior year.
The construction of the Jaburi plant meant that for most of Q3 & Q4, the company was relying on production from the Rio Madeira plant. Construction of the Jaburi pilot plant and installation of all processing equipment is now completed.
Meridian sold 21,974 tonnes of manganese product in the fourth quarter of 2017 versus 19,592 tonnes in the fourth quarter of 2016, a 12% increase in sales over the prior year period. Sales for 2017 totalled 48,943 tonnes compared with 39,820 tonnes in 2016, a 22% increase over the prior year.
In addition, during the fourth quarter of 2017 Meridian announced on October 31, 2017 offtake and pre-payment for 38,000 tonnes of which 20,000 tonnes was pre-paid, with shipments to begin in January. The sales team continues to target speciality applications in the battery, fertilizer, welding and steel industries, which recognize a premium for the high quality of Meridian’s product.
CIF Tianjin benchmark pricing for 44% manganese was US$6.92 per dmtu as of January 5, 2018 versus US$1.86 per dmtu as of January 4, 2017.
Anthony Julien, president and CEO of Meridian, commented:
In 2017 we substantially increased both production and sales of our high grade manganese product which a fantastic achievement considering we were upgrading the Jaburi plant for most of Q3 & Q4. During the upgrade, we had to rely on our older Rio Madeira plant. With growing demand from both domestic and international customers, and an increase in pre-sales for 2018, the company’s focus is to ramp up output from the Jaburi plant while improving the capacity of the Rio Madeira plant to meet our expanded sales commitments for 2018.