StratMin Global Resources (LON:STGR), the Madagascan graphite production company, has signed its first sales contract.
The contract, with a US-based established graphite trading company, is for the delivery of 54 tonnes of +40 mesh graphite, 19 tonnes of -40+80 mesh and 38 tonnes of +60mesh.
StratMin said further sales contracts are expected and will be announced as and when they happen.
"We expect new sales contracts to be the start of longer term relations with these customers," said Manoli Yannaghas, managing director of StratMin.
“We have swiftly proven our ability to sell a premium product at a confidential price that reflects its quality, following the commencement of commercial production, as recently as the start of this quarter,” he added.
Meanwhile, the company has released quarterly production numbers, broken down by mesh sizes, which are used to determine the sizes of graphite powder.
Production was as follows: 105.0 tonnes of +40 mesh with an average carbon content of 90.30%; 54.5 tonnes of +60 mesh (89/41% average carbon content); 17.0 tonnes of +80 mesh (87/05%); and 18.5 tonnes of -80 mesh (89.60%).
Management took the decision to reduce production in May and June to avoid building up too large a backlog of stock; now the sales orders have started to roll in the company will be better able to fine tune production levels.
Volume capacity at the plant remains at 120 tonnes per month. Delivery of the upgraded de-watering system to Madagascar is expected towards the end of July and should be installed by mid-August, at which point capacity at the plant will rise to more than 300 tonnes per month.
The company said current grade levels are satisfactory but clearly believes the production process can be tweaked to improve consistency, which would open up new potential markets and achieve the best price possible for the company’s product.