Mabwe Minerals, a natural resources company engaged in the mining and commercial sales of industrial minerals and metals, today issued its 2014 Revenue Forecast based on the current mining conditions on the ground at Dodge Mine, the manner in which Mabwe Minerals will produce/deliver barite in concert with Steinbock Minerals’ business plan and the timing of integrating key capital equipment to materially increase monthly production rates.
The forecast includes all expected logistic costs based on an FOB: Port of Beira delivery position. Two key time-based items are essential to meeting these numbers. Namely, funding for the processing equipment and the integration of this equipment expected to be in operation during the 2nd Qtr. 2014. It should also be noted that initial small volume orders from Steinbok Minerals include provisions for prepayment. Based on tonnages available for invoice this quarter, Mabwe Minerals anticipates 4th quarter revenues in the range of $500K to $600K.
As a follow up to last week’s Letter to Shareholders, Mabwe Minerals provided key quarterly objectives, production tonnage estimates, along with gross revenue and gross profit numbers that include both barite and limestone. The company told investors they can expect to hear additional news concerning its limestone business opportunities by the 1st quarter. However, assumptions have been included in the revenue forecast through December 2014. All first quarter estimates include additional tonnages produced during the 4th quarter this year.
To view the latest forecasts and estimates, visit http://dtg.fm/mbmi-forecasts-11-13.
First Quarter Objectives:
• Maintain barite production rate aligned with Steinbock Minerals’ business plan
• Integrate into land transportation systems to the Port of Beira, Mozambique
• Continue infrastructure development including upgrades at the Shamva Rail Depot
• Integrate into the Port of Beria
• Complete installation of barite/limestone test labs
Second Quarter Objectives:
• Integrate processing equipment
• Increase production rate
• Reduce production cost
• Increase land transportation tonnage to the Port
Third and Fourth Quarter Objectives:
• Stabilize production rates
• Continue to increase land transportation tonnage to the Port of Beira
• Integrate customized jigging systems
• Expand land transportation capacity > 140,000 tons provided by PHI Commodities
• Continue to implement production cost improvements
• Implement land transportation and port cost reduction programs.
As mentioned in the recent Letter to Shareholders, initial production and shipment rates will align with Steinbock Minerals’ business plan in that initial customers will begin receiving small lot shipments for final qualification followed by medium lot shipments for post-delivery qualification prior to engaging in larger quarterly shipments. Mabwe Minerals re-emphasized the importance of taking the additional delivery steps to ensure Dodge Mine barite enters the supply-line chain as a reputable source of supply.
During the second quarter, the integration of key capital equipment will materially increase production rates while lowering production costs, leading to continued quarter-to-quarter revenue growth through the rest of the year. As production volumes continue to increase during the 2nd half of next year, Mabwe Minerals will initiate cost reduction programs targeting land transportation costs and port fees. At Dodge Mine, WGB Kinsey will also continue to implement cost reduction programs. Infrastructure programs will also be completed by the 2nd half of next year moving into a maintenance mode having completed all employee housing, management accommodations, staff facilities along with completing all operational infrastructure requirements including processing facility sites, test labs and jigging production sites.
For more information, visit www.MabweMinerals.com
Let us hear your thoughts: Mabwe Minerals Inc. Message Board
