Bass Metals Limited (ASX:BSM) has exceeded its forecast of sales by volume for the month of November from the Graphmada large flake graphite operations in eastern Madagascar.
Achievement of monthly sales targets has been reached within months of completing ramp-up of production of stage I.
Sales made and sales agreements forged
This is a result of a number of sales and sales agreements for the month of the company’s high-quality graphite concentrates.
During November Bass sold 693 tonnes of graphite concentrate and will be prepaid for a substantial value of the order on favourably negotiated terms.
The sales and sales agreements cover a range of large and fine flake products from the Graphmada operations for delivery to the USA and other markets from December 2018 to February 2019.
Sales from ramp-up phase
Due to these sales and agreements, Bass has sold the majority of production from its ramp-up phase in July and August 2018.
Production facilities at the Graphmada operations.
The company expects the strong demand to continue and believes prices in the range of US$1,150 to $1,950 are likely to continue.
This is within and potentially above the company’s sales forecasts.
Bass executive director Peter Wright said: “We’re delighted to have completed our production ramp-up phase and have now sold the vast majority of product produced during ramp-up on good terms.
“We are excited to see that demand for our much higher priced large and jumbo flaked product is very strong as this positions the company well to continue to experience strong sales growth into 2019.
“We’re continuing to develop our markets in Asia and Europe and look forward to confirming further sales into these markets in the forthcoming months.”
Broadening sales channels
Bass continues to put an enormous amount of work into broadening its sales channels for stage I concentrates and proposed stage II concentrate sales.
The company anticipates it will now continue to produce between 40% and 50% of its premium product in the large to jumbo flake at fixed carbon levels.