Freehill Mining Limited - Yerbas Buenas Operations Update - 18 September 2024
FHS (FHS) Share Update September 2024 Tuesday 17th
Freehill Mining Resumes Operations at Yerbas Buenas After Incident
Freehill Mining Limited (ASX: FHS) has announced the recommencement of operations at its Yerbas Buenas project in Chile after receiving regulatory approval following a workplace incident.
Instant Summary:
- Yerbas Buenas gross sales of approximately $300,000 for July and August.
- Operations impacted by processing and transport constraints due to a workplace incident.
- Approval received for the recommencement of operations, with large plant now operational.
- New $400,000 purchase order secured from existing customer Belfi.
- Recommencement of magnetite mining scheduled for October.
Operations Update
Freehill Mining Limited has provided an update on its Yerbas Buenas project in Chile. The company reported gross sales of approximately $300,000 for July and August, which were impacted by processing and transport constraints due to a previously reported workplace incident.
After extensive reporting and engagement with multiple government and regulatory agencies, including SERNAGEOMIN, the national government agency for geology and mining services in Chile, the company has received approval to recommence operations. The large plant is now operational, and customer deliveries are ramping up with stockpiles of all materials building.
New Purchase Orders
Freehill Mining has secured a new $400,000 purchase order from existing customer Belfi for a new type of material. This is in addition to the $1.7 million purchase order secured in March of this year. The company anticipates more purchase orders from both existing and new customers in the near term as operations have resumed.
Magnetite Mining Recommencement
In line with its development strategy, Freehill Mining will recommence magnetite mining operations at Yerbas Buenas in October. All necessary equipment and infrastructure have been secured and are on-site. Initial production and sales will be generated from stockpiles, and major Chilean industrial conglomerates, including Melón and BSA, have expressed strong interest in purchasing magnetite pre-concentrate at favorable pricing.
Concurrently, the company will undertake additional permitting and mine planning to facilitate the scale-up of magnetite operations from the historical YB pit.
The recommencement of operations at Yerbas Buenas is a positive development for Freehill Mining, potentially leading to increased sales and customer confidence. The new purchase orders and the planned restart of magnetite mining in October are expected to boost the company's revenue and market position.
Investor Reaction:
Analysts are likely to view the resumption of operations and new purchase orders positively, as they indicate a return to normalcy and potential growth. The company's proactive engagement with regulators and customers is also likely to be seen as a positive sign.
Conclusion:
Investors should keep an eye on Freehill Mining's progress in ramping up operations and securing new purchase orders. The recommencement of magnetite mining in October will be a critical milestone for the company. Staying informed about the company's updates and strategic moves will be essential for making informed investment decisions.