OPERATIONS

Pittong payday

Purchase order worth about $600,000

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The purchase order is from C&D Logistics Group.

Under the purchase order the product, from Suvo's Pittong mine 40km west of Ballarat, Victoria, attracts about a 35% price premium compared to the weighted average selling price achieved in the second half of 2022.

The purchase order comes off the back of the 80t of Pittong product supplied to C&D in late November for use in commercial-scale trials.

Suvo will work with C&D over the coming months to place additional sales to customers in the Asia-Pacific region.

The original cooperation agreement between Suvo and C&D, dated May 25 2022, set out terms for the companies to focus on the development and growth of "other kaolin related product" markets using Pittong kaolin with a view to developing long-term relationships with customers across a range of industries, products and locations.

C&D is continuing lab-scale testing and commercial trials on Pittong's other products.

Suvo Strategic Minerals interim chairman Aaron Banks said he was pleased to have received the first commercial order from C&D.

"The purchase order from C&D follows the successful commercial-scale trials demonstrating not only the quality of product at Pittong but also the company's ability to form solid partnerships with large players in the Asia-Pacific region," he said.

"Furthermore, this order supports Suvo's commitment to sell new volumes from the upgraded operations into premium markets and validates the company's decision to upgrade the plant, returning it to nameplate capacity."

On February 6 Suvo announced the Pittong plant upgrade and optimisation had been completed and the plant's nameplate operating capacity was 60,000 tonnes per annum under certain operating conditions.

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