Rob Schaefer, Chief Commercial Officer said, “We are pleased to announce additional sales contracts providing further diversification across geography and end use markets, in line with our sales and marketing strategy. The binding spot sales agreement with Yichang Xincheng, a leading global producer of specialty expandable graphite products, is another important import of Balama graphite into China. Other agreements have also been signed with CS Additive in Germany for industrial purposes and an agency agreement with Magus Marketing for distribution to the Indian subcontinent.”
Rob Schaefer added, “Our first shipment to Yichang Xincheng is scheduled imminently. It is the intention and understanding, that subject to a successful initial spot shipment, a long term contract will then be agreed. The expandable graphite market is a key market for large and jumbo flake sizes (+80 and +50 mesh), has high growth potential, and is one of the highest value added uses for natural graphite.”
Shaun Verner, Managing Director and CEO added, “As the Balama operations ramp up we continue to enter into further sales agreements. With the executive team’s extensive marketing experience, we have demonstrated the ability to negotiate the first major imports of natural graphite into China and broaden our end market exposure, including supply into both the battery and expandable graphite sectors. As a result, we have made a decision not to activate certain elements of the Chalieco offtake agreement including the minimum tonnage supply requirement. This allows the Company flexibility to develop the sales book into the Chinese industrial market in a manner better aligned with our strategic objectives. Our 2018 production guidance of 160,000 to 180,000 tonnes based on expected demand remains unchanged.
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