An antimony roaster backed by Oman Investment Fund (OIF), a sovereign wealth fund of the Sultanate of Oman, has projected annual revenues of around $245 million from sales of antimony products and gold ingots when production ramps up by next year. Strategic & Precious Metal Processing LLC (SPMP), an Omani company which is 40 per cent owned by OIF, is close to completing construction work on its strategically important project - billed as the first antimony roaster to be built anywhere in the world outside of China for the last 30 years - at a site in Sohar Freezone.
“Plant construction is now 97 per cent complete, main grid power is connected and cold commissioning is well under way. Hot commissioning commences later this month leading to the production of antimony trioxide followed by the production of antimony and gold ingot later this summer,” Tri-Star Resources, a London-based mining development firm with a 40 per cent stake in SPMP, announced at the weekend. In a press statement, Tri-Star Resources said the $115 million state-of-the-art plant will produce at full capacity around 20,000 tonnes per annum of antimony products - representing nearly 10 per cent of annual global consumption. Antimony is a strategically important metal widely used in the industrial, electronics and plastics sectors.
Perhaps even more importantly, antimony production will be supplemented by around 60,000 ounces per annum of gold. “At current market prices, this would result in indicative revenues for SPMP of around $245 million per annum,” said Tri-Star Resources, noting that this would generate around $49 million in EPDIA (earnings before interest, depreciation and amortisation) per annum. Additionally, the landmark project is expected to open up new businesses opportunities, according to Tri-Star. “Beyond the achievement of successful operation of the Project, SPMP management anticipates further upstream opportunities and initiatives to improve downstream economics through the delivery of engineered antimony products to its customers.
The plant is expected to gradually ramp up to full operating capacity during 2018 and 2019 as the commissioning process is completed and additional feedstock supplies are secured.” To help meet the short-term operational and working capital financing of the project, Tri-Star Resources announced a proposed conditional placing to raise £13.0 million ($17.25 million approx) via the issue of ordinary shares in the company by way of an accelerated book building process. Funds under the discretionary management of Odey Asset Management LLP have committed to invest in the placement. The book build closes on June 25, 2018.
Crispin Odey, Founding Partner of OAM said “We are delighted to continue to support Tri-Star and SPMP in this final fundraising before the SPMP Project goes into production. Our calculations indicate that, based on the price of this investment in Tri-Star through the Placing, we are investing in SPMP at an implied post-fundraising enterprise value of approximately $200 million, or a post-fundraising equity value of $100 million, which we view as a very attractive level. We look forward to further news as the plant goes through commissioning and starts to produce its first antimony and gold products.” DNR Industrials Ltd, part of Dubai-based investment and project development corporation Dutco Group of Companies (Dutco), holds the balance 20 per cent equity stake in SPMP.
“Plant construction is now 97 per cent complete, main grid power is connected and cold commissioning is well under way. Hot commissioning commences later this month leading to the production of antimony trioxide followed by the production of antimony and gold ingot later this summer,” Tri-Star Resources, a London-based mining development firm with a 40 per cent stake in SPMP, announced at the weekend. In a press statement, Tri-Star Resources said the $115 million state-of-the-art plant will produce at full capacity around 20,000 tonnes per annum of antimony products - representing nearly 10 per cent of annual global consumption. Antimony is a strategically important metal widely used in the industrial, electronics and plastics sectors.
Perhaps even more importantly, antimony production will be supplemented by around 60,000 ounces per annum of gold. “At current market prices, this would result in indicative revenues for SPMP of around $245 million per annum,” said Tri-Star Resources, noting that this would generate around $49 million in EPDIA (earnings before interest, depreciation and amortisation) per annum. Additionally, the landmark project is expected to open up new businesses opportunities, according to Tri-Star. “Beyond the achievement of successful operation of the Project, SPMP management anticipates further upstream opportunities and initiatives to improve downstream economics through the delivery of engineered antimony products to its customers.
The plant is expected to gradually ramp up to full operating capacity during 2018 and 2019 as the commissioning process is completed and additional feedstock supplies are secured.” To help meet the short-term operational and working capital financing of the project, Tri-Star Resources announced a proposed conditional placing to raise £13.0 million ($17.25 million approx) via the issue of ordinary shares in the company by way of an accelerated book building process. Funds under the discretionary management of Odey Asset Management LLP have committed to invest in the placement. The book build closes on June 25, 2018.
Crispin Odey, Founding Partner of OAM said “We are delighted to continue to support Tri-Star and SPMP in this final fundraising before the SPMP Project goes into production. Our calculations indicate that, based on the price of this investment in Tri-Star through the Placing, we are investing in SPMP at an implied post-fundraising enterprise value of approximately $200 million, or a post-fundraising equity value of $100 million, which we view as a very attractive level. We look forward to further news as the plant goes through commissioning and starts to produce its first antimony and gold products.” DNR Industrials Ltd, part of Dubai-based investment and project development corporation Dutco Group of Companies (Dutco), holds the balance 20 per cent equity stake in SPMP.
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