Firering Strategic Minerals PLC on Monday said its investee Limeco operation will generate positive cashflow following the signing of a new services agreement.

The Zambia and Ivory Coast-focused mining company holds a 21% stake in Limeco Resources Ltd, with an option to increase this to 45%.

Once fully operational, Limeco is expected to become the largest quicklime operation in Zambia.

Limeco has signed an agreement with an unnamed multinational commodity trading company relating to the provision of logistics services. This is expected to generate revenue between $600,000 to $720,000 per annum.

As a result, Limeco will produce positive operational cashflow ahead of the commencement of quicklime production in the fourth quarter of 2024.

Firering Chief Executive Officer Yuval Cohen said: ‘The immediate cashflow from the logistics services agreement in addition to aggregate revenue aligns with Limeco’s multi-revenue strategy and supports the development of its core quicklime project.’

In addition, Firering said negotiations are ongoing with major copper producers relating to the sale of quicklime, with offtake agreements expected as operations ramp up in the coming months.

Firering shares were down 1.8% to 2.80 pence each in London on Monday morning.

Copyright 2024 Alliance News Ltd. All Rights Reserved.