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clock Created with Sketch. 25/10/23
18:19
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Originally posted by Sweetsound:
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From the report:In February 2023, the Company announced that it had successfully completed, on time and on budget, the above-mentionedPittong plant upgrade ~50,000 tonnes per annum of hydrous kaolin, representing an 83% utilisation rate of the 60,000 tonnes name plateprocessing capacity.a major take or pay Offtake Agreement (“Agreement”) with ChaozhouChengcheng Industrial Co.,Ltd (“Chaozhou”) in November 2022 . This is a major supply agreement for the Company coveringa minimum order quantity of 4,275 tonnes over a three-year term. April 2023 , Suvo signed another Sales Agreement (“the Agreement”) with Chinese distributor, Qingdao Minglang NewMaterial Co., Ltd (“Qingdao”). The Agreement covers up to 500 tonnes (+/-10%) of hydrous kaolin...to sell the additionalhydrous kaolin tonnes available from the Company’s Pittong plant requires an in depth and acute understanding of eachregion throughout Asia. Management is confident that it is acquiring the necessary knowledge of how the market works.... So, he upgraded plant with an ability to produce 50000 tonnes pa of hydrous kaolin now has contracts to sell 4775 tonnes in place over a time frame of up to 3 years for roughly a total value of just under $4million with the last sales agreement signed in April this year.Suvo is not yet at the stage where it is generating positive cash flows at the group level. Further, no assurance can be giventhat Suvo will become profitable in the future. Accordingly, the Company may require additional equity or debt funding in theshort, medium or long term. The ability of Suvo to access funding is never certain. .. One thing is certain, the share price will not improve until positive cashflow is achieved and whether Suvo survives until then is uncertain, given lack of sufficient sales or lack of funding access via equity or debt funding should it be required. Now back to my studies trying to understand why so much money has been spent on plant upgrade with resultant plant under utility . AIMO
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Looking very much like a lifestyle company. Remuneration is way to high. No work on the silica sand deposits and the kaolin deposit seems a waste of time since they cannot sell what they are producing now. This is my worst performing investment.
(20min delay)