| Tue 19 May 2009, 10:15 | | BRE - Braemore Resources Plc - Operational Update |
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BRE
BRE
BRE - Braemore Resources Plc - Operational Update
BRAEMORE RESOURCES PLC
(A company incorporated in England and Wales with Registration Number 5350550)
(South African registration number: 2008/013973/10)
Share code on the JSE Limited: BRE
Share code on AIM: BRR & ISIN: GB00B06GJQ01
("Braemore" or "the Company")
OPERATIONAL UPDATE
Braemore Resources (AIM: BRR; JSE: BRE), together with its technology partner
Mintek, has achieved the stated research and development programme objective of
developing a proven, industry-leading technology for the smelting of high chrome
Platinum Group Metals (`PGM`) concentrates. Braemore is now at the point in its
business strategy, which will allow the company to transform from a technology
development company into a commercially viable entity on the back of its
technology.
The conclusion of the research into the PGM refining process, to complement the
ConRoast smelting process, will enhance the commercial strength of the smelting
process and is the final stage required to complete the research and development
phase of the company.
The company has also undertaken to restructure the demonstration smelting
facility in response to current metal prices and a strengthening South African
Rand ("Rand".). The company has experienced working cost increases in US Dollar
("Dollar") terms of some 12.5% within an eight week period whilst Dollar metal
prices have remained static. This has put significant pressure on the company`s
working capital as it accelerated the conclusion of its research and development
programme. The restructuring of the demonstration facility is targeted towards
significant reductions in operating costs and reviewing the process units to
better align with the proposed refining process. The process restructuring will
be undertaken as swiftly as possible to minimise interruption to production at
the demonstration unit. The refining process, once implemented, will increase
the margins of the process to ensure strong commercial viability even at times
of a strong Rand and low metal prices.
The company has entered into discussions with various parties to support the
financing of the commercialisation strategy both for the development capital to
build a next stage ConRoast facility with refining capability as well as
addressing the Company`s short term working capital needs . In addition the
company is well advanced in forming joint ventures with existing and near-term
producers of PGMs to secure feed material for a fully commercial smelting and
refining facility.
Leon Coetzer, Chief Executive Officer, stated that Braemore is fulfilling its
potential. "We have steadily met our targets and we are poised for expansion.
Funding the commercialisation of ConRoast and refining process is key, and we
believe that the success of the development work done to date with the
demonstration smelter showcases our ability to address the financing, smelting
and refining challenges within the platinum industry."
Johannesburg
19 May 2009
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 19/05/2009 10:15:01 Produced by the JSE SENS Department.
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