Firering Strategic Minerals plc (LON:FRG) Independent Non-Executive Director Vassilios Carellas caught up with DirectorsTalk for an exclusive interview to discuss key terms of the new revenue stream, how the lease agreement contributes to Limeco’s profitability, other revenue streams and what investors can expect in the coming weeks.
Q1: Vassilios, if we could just start with the key terms of the storage and logistic new revenue stream. What can you tell us about that?
A1: If one looks at the asset as a whole, it comes with a lot of additional infrastructure, fixed assets as well as mobile assets and some of it is superfluous to existing or current requirements. So, this agreement enables us to actually generate some revenues from some of these assets that are currently not required.
It’s a 2-year agreement and that agreement actually enables Firering Strategic Minerals to realise some value on something at the moment that’s just sitting there, not generating anything.
Q2: How does the lease agreement contribute to Limeco’s profitability before it starts quicklime production in Q4?
A2: So, this agreement will generate initially somewhere between $600,00-$700,000 of revenue per annum so if one takes a look at the moment that revenue stream actually makes the operation cashflow positive before we’ve actually even commissioned any of the quicklime operations.
Q3: What other revenue streams does the business have?
A3: Obviously, this is one of the bigger revenue streams we’ve got but, as we’ve announced previously, we have been crushing aggregate and selling that at the gate. We do also have some other mobile equipment that we’ve been renting out.
So, put it all together, there’s quite a bit of revenue coming through now before even getting the quicklime going.
Q4: Finally, what can investors expect in terms of further announcements from Firering Strategic Minerals over thein coming weeks?
A4: Obviously everything we’re doing at the moment is focussed on the quicklime and getting first quicklime production in Q4, so that’s in the next quarter.
In terms of news flow, one can expect all the bits and pieces that we are doing to get to that stage. So, in terms of getting the coal gasification unit going, there’s obviously other little bits and pieces that we are in the process of putting in operation up there together.
We’ll give a little more detail and flavour as to what one can expect leading up to that significant milestone.
