REG - Keras Resources PLC - Mining campaign extended due to increased demand

Keras ResourcesAnnouncement

07/09/2022 07:00

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RNS Number : 5164Y  Keras Resources PLC  07 September 2022

Keras Resources plc ('Keras' or 'the Company')

 

Mining campaign extended at Diamond Creek Phosphate Mine to satisfy increased
demand

 

Keras Resources plc (AIM: KRS) announces that it will extend its summer mining
campaign at its high-grade Diamond Creek organic phosphate mine, ('Diamond
Creek') in Utah, USA.  A very encouraging marketing campaign in California,
where a substantial percentage of Keras' phosphate product is currently sold,
resulted in a material increase in committed sales, in particular for the
Company's coarse #10 mesh product, over the winter season (from November 2022
through to May 2023). This increased demand represents an increase of
approximately 40% in expected monthly sales to 700 tons from previously
announced monthly sales figures.  To ensure that sufficient product in this
size fraction is available to meet committed demand over the winter season,
Keras is extending mining operations at Diamond Creek to the end of the summer
season to produce an additional 2,500 tons of run of mine ore for downstream
milling to supplement ore already in stock.

 

Graham Stacey, CEO of Keras, commented, "Demand for our high-grade organic
rock phosphate continues to grow encouragingly as evidenced by the significant
increase in expected August 2022 sales of 500t to physical deliveries of 700t,
largely to distributers in the Central California Valley. Firm commitments for
similar monthly tonnages through to May 2023, from these repeat clients, has
resulted in the need for additional run of mine ore to ensure product
availability through to the early spring planting season in 2023. We will now
extend our mining campaign to meet this demand."

 

"The worldwide pricing of synthetic fertilizers has seen unprecedented growth
over the last 12 months, due in large part to geopolitical instability
impacting global supply of feed elements for synthetic fertilizers which has
seen organic fertilizers gaining market share in the global market. We believe
that fertilizer market demand fundamentals will remain robust and we see the
potential for real price growth to support increasing margins in our market
segment going forward."

 

The information contained within this Announcement is deemed by the Company to
constitute inside information as stipulated under Article 7 of the Market
Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the
domestic law of the United Kingdom by virtue of the European Union
(Withdrawal) Act 2018 (as amended). Upon the publication of this Announcement
via the Regulatory Information Service, this inside information is now
considered to be in the public domain.

 

For further information please visit www.kerasplc.com
(http://www.kerasplc.com) , follow us on Twitter @kerasplc or contact the
following:

 

 Graham Stacey / Annabel Redford          Keras Resources plc             annabel@kerasplc.com

 Nominated Adviser & Joint Broker         SP Angel Corporate Finance LLP  +44 (0) 20 3470 0470

 Ewan Leggat / Charlie Bouverat

 Joint Broker                             Shard Capital Partners LLP      +44 (0) 207 186 9900

 Damon Heath / Erik Woolgar

 Financial and Corporate Communications   Celicourt                       +44 (0) 774 884 3871

 Felicity Winkles

 

Notes:

Keras Resources (AIM: KRS) wholly owns the Diamond Creek organic phosphate
mine in Utah, US. Diamond Creek is one of the highest-grade organic phosphate
deposits in the US and is a fully integrated mine to market operation with
in-house processing facilities. The operation produces a variety of organic
phosphate products that can be tailored to customer requirements for
fertiliser.

 

The Company is focused on continuing to build market share in the fast-growing
US organic fertiliser market and build Diamond Creek into the premier organic
phosphate producer in the US.

 

Additionally, Keras holds an 85% interest in the Nayéga manganese project in
Togo, which hosts an 8.4 million tonne manganese oxide Ore Reserve in northern
Togo, held through Togolese subsidiary Société Générale des Mines SA
(SGM).

 

 

 

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