LONDON - Capital Metals PLC (AIM: CMET) has released its unaudited interim results for the six-month period ending September 30, 2024, announcing a strategic reduction in capital expenditure for its Eastern Minerals Project in Sri Lanka. The company, which is advancing towards the mine development stage, reported that estimated capital expenditures have been reduced by one-third to $20.9 million.
The reduction in spending is part of the company's strategy to expedite cash flow and enable the project to become self-funding as quickly as possible. With this new approach, Capital Metals anticipates initial production of Heavy Mineral Concentrate at a rate of 550,000 tonnes per annum, forecasting 125,000 tonnes per annum with potential upside from higher grades in the initial mining area.
Capital Metals is targeting a Final Investment Decision (FID) in the second quarter of 2025, aiming to begin construction shortly thereafter. The construction period is expected to last 9 to 12 months before the commencement of production.
The company is currently in active discussions with offtakers, vendor financiers, and potential Sri Lankan project partners to secure financing that minimizes or eliminates the need for market equity. Plans for a drilling program, which is expected to commence later this month, are also underway. The program aims to expand resources, support design and engineering, and enhance mine planning while increasing geological confidence in the proposed mining areas.
In April 2024, Bruce Griffin, Executive Chair of Sheffield Resources Limited (ASX: SFX), joined the Board of Capital Metals as a Non-Executive Director following Sheffield's strategic investment of £1.25 million in March. Additionally, in July 2024, Stuart Forrester, a seasoned engineering professional with extensive experience in mineral sands projects, was appointed as Chief Operating Officer.
The company has also intensified its community engagement efforts, led by dedicated personnel, to foster a deeper understanding of the project and implement supportive initiatives.
Executive Chairman Greg Martyr commented on the company's progress, expressing confidence in achieving significant operating margins over the life of the project due to conservative cost estimates provided in the Preliminary Economic Assessment (PEA).
This news is based on the press release statement issued by Capital Metals PLC.
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