Suvo Strategic Minerals has successfully completed a plant upgrade optimisation review on its Pittong Operation in Victoria.
By identifying and upgrading vital plant and equipment, it has resulted in the opportunity to lift production and reduce operating cost at a modest capex and will translate into a doubling of production and a lift in forecast EBITDA.
Pittong is the only producer of hydrous kaolin in Australia, and the study work has enabled the company to validate the growing demand for quality hydrous kaolin globally.
Suvo Executive Chairman Henk Ludik said the strategic review was a major milestone, unlocking tremendous value for Suvo and its shareholders.
“This gives the company great confidence in unlocking other kaolin related markets including metakaolin applications for emerging opportunities in carbon reducing green cement,” he said.
“The company is of the firm opinion that if the Federal Government is to meet its 2030 carbon reduction targets, green cement will be an integral part of the plan to meet those targets.”
The independent review has confirmed the plant capacity expansion will be capable of delivering a name plate processing capacity of about 60,000 tonnes per annum under certain operating conditions, with a forecast completion date of end Q3 FY2023, most of which Suvo intends to satisfy by the forecast completion date.
The Pittong plant has been running for 50 years and following the acquisition by Suvo from Imerys in December 2020, the company now has a detailed dataset available whereby management can place a reasonable basis on actual cost of production, and correspondingly the weighted average selling price, using historical sales contracts.
