Fluormin (LON:FLOR) has received US6.5 million as the first payment of its disposal of a 20 per cent stake in the Kenya Fluorspar Company (KFC), it said, as it unveiled a Q3 update today.
The fluorspar producer received the first payment on April 19, and received a dividend of US$1 million from KFC on April 16.
Last month, the company sold the stake for US$13 million, realising a profit of around US$10.725mln.
The sale gave the firm additional funds pending the outcome of ongoing sorting technology trials on ore from its Witkop mine in South Africa.
As reported last month, the firm is actively considering a variety of options to reduce costs and, in particular, an upgrade of ore feed into the Witkop mill through the use of ore sorting technology.
These trials, if effective, would lower the operational costs at the mine. The economic viability of the mine will be determined by the outcome of these trials.
The results are expected in the fourth quarter, which ends in June this year, the firm said, adding that initial analysis suggested further testing was required.
Operationally, the company said it produced 19,954 tonnes of ore in the three months to March 31 and shipped 12,079 tonnes.