Q3 Update (1561C)

TIDMFLOR

RNS Number : 1561C

Fluormin PLC

26 April 2012

Fluormin Plc

Q3 Update

LONDON, UK -- (Marketwire - April 26, 2012) - Fluormin Plc (AIM: FLOR) ("Fluormin" or the "Company") announces corporate, financial, operational and other information pertaining to its third fiscal quarter.

Corporate and Financial Highlights for the Company for the quarter ended 31 March 2012:

   --           Disposal of interest in Kenya Fluorspar Company, Limited ("KFC") for US$13 million; 
   --           Receipt of US$1,000,000 dividend ($900,000 net of taxes) from KFC on 16 April 2012; 
   --           Receipt of US$6,500,000 (first) payment for KFC disposition on 19 April 2012; and

-- Group Cash and Current Receivable Balance as at 31 March 2012 of US$21 million (of which US$1.8 million is restricted).

Operational Highlights for Sallies Limited (Sallies) for the three months ended 31 March 2012

 
 
 -- Q3 produced tonnes                             19,954 
-- Q3 shipped tonnes                               12,079 
-- Average price of Q3 shipped                     US$472 
 tonnes* 
-- Product inventory as at 31 
 March 2012                                        16,376 
-- Plant recovery                                   71.1%

* Note: average prices of shipped tonnage are typically negotiated and settled between three to nine months in advance of shipment and reflect weighted average prices (FOB Durban).

Operational Update

During the quarter, the Company employed contractor mining to assist with mine stripping and blast drilling activities. As a result of these efforts together the mine built a material stockpile of ore. The infil RC drill programme has continued which, together with a change in mining method, has resulted in dilution being lowered and ROM headgrade improved from 7.8% to 8.6%. Nevertheless, costs increased substantially. Agreements with contractors were mostly terminated as at 31 March 2012 and operations reverted to a reliance upon owner-operated equipment. The outlook for fluorspar prices has forced management to consider its options to further improve mine and plant performance and the overall cost of production.

Disposal of Interest in KFC

During the quarter, the Company reached an agreement with the majority owner of Kenya Fluorspar Company, Limited ("KFC") to sell its 20% interest in KFC for US$13,000,000. The cash consideration was to be paid as to US$6,500,000 on or before 30 April 2012 and the balance of US$6,500,000 on or before 30 November 2012. The holding value of the 20% stake of KFC is approximately US$2,275,000, thereby realising a profit for the Company of approximately US$10,725,000. The proceeds from the initial instalment of US$6.5 million were received on 19 April 2012. In addition, the Company received a dividend from KFC during the quarter of $1 million ($900,000 net of taxes).

Preliminary Results from Electronic Sorting

During the quarter, the Company retained Commodas Ultrasort ("Ultrasort") to conduct bulk testing of their sorting technology on the Witkop ore. The testing, which was conducted at Ultrasort's German facilities, considered a number of process techniques including X-Ray Transmission ("XRT"), optical, infrared and near infrared. Reflecting current crushing facilities, the testing was conducted on -40+20mm and -20+10mm fractions. The best results achieved to date were based on a sulphide sort using an XRT sensor. Testing is now underway using ultraviolet and laser sorting sensor technologies. These results are expected later in the 4(th) quarter (ending June 2012).

A preliminary analysis of the test results received to date suggest that the sorting technologies warrant further testing and evaluation. No decision will be taken until all testing is complete and a cost study has been undertaken.

About Fluormin Plc

Fluormin is a producer of acid grade fluorspar, an industrial mineral widely used in the chemical and aluminum industries for the making of products such as HFCs (Hydrofluorocarbons used as refrigerant gasses like Freon (TM)) and aluminum fluoride.

Contact Information

Fluormin plc

   Al Gourley, Co-Chief Executive Officer:          (44)207 7556 0940, agourley@fluormin.com 
   Mark Bolton, Co-Chief Executive Officer:        (44)20 7556 0940, mbolton@fluormin.com

Westhouse Securities

Martin Davison: (44)020 7601 6100, martin.davison@westhousesecurities.com

This information is provided by RNS

The company news service from the London Stock Exchange

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