Suvo Strategic Minerals Ltd (ASX:SUV) has completed the Pittong processing plant upgrade and optimisation project in Victoria ahead of time and on budget.
The company has now validated nameplate capacity, with the plant producing 1,004 tonnes over the last six days, representing a 245% uplift in production.
Offtake discussions with new and existing customers to match the increase in production capacity are already well advanced.
Plant update delivers results
Suvo concluded a plant upgrade and optimisation review for the Pittong hydrous kaolin plant in August 2022.
The independent review confirmed the nameplate processing capacity of the Pittong plant to be around 60,000 tonnes per annum under certain operating conditions.
Over the past six days, the Pittong plant has been operated continuously and produced in total 1,004 tonnes of hydrous kaolin, representing a 245% uplift in production compared to average weekly production rates achieved in 2022 of 410 tonnes.
Pittong’s ability to produce ~50,000 tonnes per annum (based on 83% utilisation) of hydrous kaolin has now been validated and production will increase along with sales orders.
Near-term opportunities and commercial product trials to finalise offtakes for the additional hydrous kaolin volumes are evident, with newly appointed marketing and logistics manager Julian Anthony meeting with new and existing international customers over the coming weeks while utilising his extensive network to promote Pittong’s additional production capacity.
Anthony has extensive experience as a sales executive with a proven track record of delivering substantial growth in sales, having previously worked at GMA Garnet Pty Ltd.
“The successful commissioning of the Pittong processing facility is a major milestone for the company. The management and operations team at Pittong have done a tremendous job to deliver the upgrade and optimisation project on budget and ahead of schedule, with the previous anticipated completion date being the end of Q1 2023,” SUV executive chairman Henk Ludik said.
“This increase in production capacity allows Suvo to more than double production at its flagship Pittong operating kaolin plant. Assuming a full sales order book, the company will be able to reduce its operating costs and generate a 4x uplift in forecast EBITDA.
“Pittong is the only producer of hydrous kaolin in Australia. This gives Suvo great confidence in unlocking value from traditional and new emerging kaolin markets.”