Firering Strategic Minerals plc (LON:FRG) Independent Non-Executive Director Vassilios Carellas caught up with DirectorsTalk for an exclusive interview to discuss the commissioning of the gasifier and Kiln 1, first production, and further milestones.
Q1: Vassilios, you have announced significant milestones with the gasifier and Kiln 1 being commissioned. Can you provide some detail about these exciting milestones?
A1: Obviously one of the big changes we have done to the plant is converting the kilns from being fired from heavy fuel oil to gasification from gas, and so that was also one of the big capital investments that we did last year.
We have managed to get the gasifier going without any issues, all the modifications we did to the kiln to enable it to run off the gasifier have worked as expected. So, it has been a great result for everything we have done.
Q2: Now with the gasifier and Kiln 1 commissioned, when will you see first production?
A2: Next week, this time, hopefully. Obviously, we will now start the process of feeding material through the kiln and so this time next week we should start seeing material coming out.
Q3: Now, you explained in the announcement you expect a 30-day period to optimise production. Can you explain the key optimisation factors?
A3: It’s a combination of the throughput of the limestone going through the kiln versus the actual heating up of it. So, over the next 30 days, it’s optimising how much gas we put in to heat up the kiln versus how quickly we draw the material out of the kiln. That’s something that over the next 30 days we’ll fine-tune so that we get an optimal rate of material coming out versus the material being fired.
Q4: What are the key operational and financial KPIs of Kiln 1 at full capacity?
A4: At full capacity, remember there’s 8 kilns there so at full capacity each kiln should do roughly 100 tonnes of quicklime per day.
So, if one looks at the KPIs on that, you’re looking at 100 tonnes, so $4 million of revenue versus a cost of half of that so $2 million and you’ve got eight kilns so $16 million over the course of the year, profit. Quite robust.
Q5: What can investors expect to see from Firering Strategic in terms of further milestones over the next six to eight weeks?
A5: Well, obviously it’s optimising Kiln 1, getting capacity going, first sales of that material, as well as the commissioning of the remaining three kilns in that batch.
Each batch of kilns come in four so with that gasifier, we’ll be able to fire all four kilns and it’s just a matter now, over the next few months, of getting each of those kilns going and producing quicklime.
