AIS Resources announces that the Company has signed a contract with an agricultural product manufacturer to supply 1,000 tonnes of manganese every two weeks for twelve months based on the weekly benchmark price. At the current grade and benchmark price this contract has an estimated gross revenue of US$274,400 every two weeks (US$7million/CAD$9.26 million per annum) based on US$274.40 per tonne.
Highlights of the AIS Resources Manganese Ore Contract:
- Manganese sale price of $5.60 Dry Metric Tonne Unit (DMTU) for 49% Mn was negotiated at a 1.75% discount to the Platts Manganese 44% CFR lump benchmark price for the week of July 26 of $5.70 per DMTU (or one percent of manganese content).
- Payment terms are by letter of credit with 90% upon vessel departure from Lima, and 10% upon CIQ analysis in China on arrival.
- The contract includes the 200 tonnes of manganese already shipped.
- Currently 300 tonnes of high-grade manganese ore fines has been loaded into twelve containers on a loose basis at Lima Port eliminating the cost of tuff bags.
AIS Resources’ Contractor Is Opening the Victor Mine
The company has been working closely with our contract miner to open the Victor mine that shares the same manganese body as the San Jorge mine. Our Geologist visited the mine in the last two weeks and our mine engineer has completed the necessary mining design works. As additional equipment arrives this week we will be able to expand our production after the overburden is removed and benches in the pit are created. This will enable us to move toward our short-term target of producing 10,000 tonnes a month.
AIS Resources President and CEO, Phillip Thomas stated, “I am delighted we have signed a long term contract with a substantial buyer on very competitive terms. Our logistics team is working very efficiently and we have improved our loading process eliminating the cost of tuff bags.
We have engaged Impala/Trafigura to provide our shipping and export services resulting in substantial savings. This contract will underpin our expansion plans. As soon as we reach 5,000 tonne shipments we will revert to break-bulk Handymax shipping and realize further savings.”