LONDON, Jan. 16, 2018 /CNW/ - Meridian Mining SE (TSX V: MNO) ("Meridian " or the "Company") today announced 2017 production and sales results for Meridian's high-grade manganese project located in the state of Rondônia, in northwestern Brazil.
- Produced 51,580 tonnes of manganese product for year ending December 31, 2017
- Sold 48,943 tonnes of manganese product for year ending December, 31, 2017
- Completed the upgrade and commissioning of the Jaburi Plant
"In 2017 we substantially increased both production and sales of our high grade manganese product which a fantastic achievement considering we were upgrading the Jaburi plant for most of Q3 & Q4. During the upgrade, we had to rely on our older Rio Madeira plant." said Anthony Julien, President and CEO of Meridian. "With growing demand from both domestic and international customers, and an increase in pre-sales for 2018, the company's focus is to ramp up output from the Jaburi plant while improving the capacity of the Rio Madeira plant to meet our expanded sales commitments for 2018."
Meridian produced 16,786 tonnes of manganese product in the fourth quarter of 2017 versus 13,326 tonnes in the fourth quarter of 2016, a 25% increase in production over the prior year period. Production for 2017 totalled 51,580 tonnes compared with 34,622 tonnes in 2016, a 48% increase over the prior year.
The construction of the Jaburi plant meant that for most of Q3 & Q4, the company was relying on production from the Rio Madeira plant. Construction of the Jaburi pilot plant and installation of all processing equipment is now completed.
Meridian sold 21,974 tonnes of manganese product in the fourth quarter of 2017 versus 19,592 tonnes in the fourth quarter of 2016, a 12% increase in sales over the prior year period. Sales for 2017 totalled 48,943 tonnes compared with 39,820 tonnes in 2016, a 22% increase over the prior year.
In addition, during the fourth quarter of 2017 Meridian announced on October 31, 2017 offtake and pre-payment for 38,000 tonnes of which 20,000 tonnes was pre-paid, with shipments to begin in January. The sales team continues to target speciality applications in the battery, fertilizer, welding and steel industries, which recognize a premium for the high quality of Meridian's product.
CIF Tianjin benchmark pricing for 44% manganese was US$6.92 per dmtu as of January 5, 2018 versus US$1.86 per dmtu as of January 4, 2017. (source: www.metalbulletin.com).
The technical information about the Company's production and sales activities has been prepared under the supervision of and verified by Carlos Braga (B.Sc., MBA, member of the Chilean Mining Commission), the Chief Operating Officer of Meridian Mining, who is a "qualified person" within the meaning of National Instrument 43-101.
On behalf of the Board of Directors of
Meridian Mining SE
President, CEO and Director
Meridian Mining SE is focused on the acquisition, exploration, development and mining activities in Brazil. The Company is currently focused on exploring and developing the Espigão manganese and gold projects, the Bom Futuro tin JV area, and adjacent areas in the state of Rondônia. The Company employs a two-pronged strategy with the objective of growing pilot production while advancing a parallel multi-commodity regional exploration program. Meridian is currently producing high grade manganese at its project located at Espigão do Oeste.
Further information can be found at www.meridianmining.co.
Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the Company's plans for exploration and development of its properties and potential mineralization. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such risk factors include, among others, failure to obtain regulatory approvals, failure to complete anticipated transactions, the timing and success of future exploration and development activities, exploration and development risks, title matters, inability to obtain any required third party consents, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices and one-time events. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the proposed exploration and development of mineral projects will proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3) any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
The Company cautions that it has not completed any feasibility studies on any of its mineral properties, and no mineral reserve estimate has been established. In particular, because the Company's production decision relating to BMC's manganese project is not based upon a feasibility study of mineral reserves, the economic and technical viability of the Espigão manganese project has not been established.
The TSX Venture Exchange has in no way passed upon the merits of the proposed Arrangement and has neither approved nor disapproved the contents of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Meridian Mining S.E.
For further information: Anthony Julien, tel: +1 (604) 681-0405, [email protected]