ARV generates first revenues from Whundo copper mine

By Trevor Hoey. Published at Jun 7, 2017, in Juniors

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.

tags

Copper

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.