ARV generates first revenues from Whundo copper mine
Artemis Resources (ASX:ARV) Chairman, David Lenigas informed the market on Wednesday morning that the company had received first revenues from copper sold to Blackrock Metals in accordance with the supply agreement struck in March this year.
Lenigas said that sales of the first truckloads of copper oxide, from its Whundo copper mine in WA, will generate net revenue of $100,000, and that this run rate should be maintained, equating to annualised income of circa $1.2 million.
However, any revenue projections are speculative so investors should seek professional financial advice if considering this stock for their portfolio.
For an emerging explorer and developer such as ARV this is a significant milestone, and the company is now looking to expand and extend the existing ore sales contract with the aim of increasing net cash flow.
Lenigas said there is significantly more copper oxide material sitting at surface at Whundo. Given the fairly simple logistics of transporting this to the Whim Creek processing plant, an extension to the existing agreement appears within reach.
It is worth noting that according to Fox Resources’ mine records, the existing oxide stockpiles for potential sale are 30,000 tonnes grading 3.9% copper. This suggests that ARV could receive a higher price per tonne given the first delivery at grades in the order of 1.5% copper.