By R3D Resources Limited (ASX: R3D) (the Company), is pleased to advise that it has produced its first shipment of Copper Sulphate Pentahydrate (Copper Sulphate) which is ready for collection at the Tartana mine site. Minimum shipments are 28 bags weighing approximately 1.2 tonne each. The Copper Sulphate comprises 25% Copper and is priced at 25% of the LME copper price plus a premium.
HIGHLIGHTS:Production of 28 bulka bags (approximately 34 tonne) of Copper Sulphate Pentahydrate has been completed at Tartana Plant, with this production meeting the minimum shipment requirementsOfftaker, Kanins International, will purchase the shipment at mine gate, providing important cash flowProduction is expected to continue early next week again, pending supply of reagents and additional pumpsProfit margins continue to increase with Copper price improvement which is currently ~US$9000 per tonneFirst $500k of the Rights Issue has been underwritten by Breakaway Investment (controlled by Stephen Bartrop) and is presently scheduled to close on Wednesday, 10 April 2024
R3D Managing Director, Stephen Bartrop, commented:
“It is very exciting to announce the milestone of the first shipment of Copper Sulphate which is ready for pick up by our offtake partner Kanins. This is an important milestone and it means that Tartana’s Copper Sulphate is now entering the Australian technical grade market.
“We are also encouraged with the increase in the copper price which is now around US$9,000 per tonne. We have a positive outlook for the Copper market, influenced by electric vehicle market and energy transition. A potential appreciating Renminbi will also make it cheaper for Chinese consumers.”
The Company continues to expect Kanins to pay for the product at mine gate, pending arrangement of transportation of the product. The Walsh River crossing nearest to the Tartana site continues to be at a level making truck transportation difficult – both for our product to leave the site, and for input materials to be received.
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