Operational Update

RNS Number : 7554I

Fox Marble Holdings PLC

08 July 2013

 



AIM:  FOX

8 July 2013

Fox Marble Holdings plc

 ("Fox Marble" or the "Company")

Operational update

Fox Marble, the AIM listed company focused on marble quarrying in Kosovo and the Balkans region, is pleased to provide the following operational update.

Highlights

·     Substantial progress made with quarrying operations - two quarries are currently in production and two more due to be in production by the end of October

·     Completed acquisition of site for the processing plant

·     Currently commissioning detailed construction drawings and architects' plans, which are expected to be completed by the end of October

·     Processing plant scheduled for completion in Q1 2014

·     Progress in establishing distribution

 

Quarrying

As announced on 4 July 2013, Fox Marble has acquired rights to a further quarry in Kosovo and entered into an operating agreement for a quarry in Macedonia. This brings the number of quarries under licence to the Company to six, with operating agreements in place with a further two quarries. These acquisitions are in line with the Company's long term strategy to expand its portfolio and widen its geographical exposure as it looks to build a profitable marble quarrying and production business.

Two of Fox Marble's quarries are currently producing; and a further two are expected to be extracting marble by the end of October.  The Company has been able to accelerate the opening of the second two quarries because it has been able to equip four quarries within the orginal budget for two quarries.  Fox Marble currently has 150 blocks in stock ranging in weight from 6 to 16 metric tonnes (mt) totalling 1,500 metric tonnes  of marble.

Quarry site	Status	Marble
Cervenilla A	Producing	Red & grey
Verrezat	Open	Grey
Suhogerll	Open bench exposed	White, rose & red
Antenna	Open	Black
Peja	Open	Honey onyx
Malesheva	Producing	Grey/white & cream
Prilep	Open bench exposed	White
Drini	Open bench exposed	Grey

 

Processing plant

Fox Marble has acquired a 99 year lease over 10 hectares of land in the district of Lipjan in Kosovo, on which it intends to build its processing plant.  

The site is a 10 minute drive from Pristina airport with easy access to two motorways and the rail network. The site has already been rezoned for industrial use. The local municipality has agreed to pay for, and construct, two approach roads to the site.  

Fox Marble is currently commissioning detailed construction drawings and architects' plans, which are expected to be completed by the end of October. In parallel with this, Fox Marble is currently preparing and levelling the site for construction.  On receipt of planning consent, the Company will issue tenders to construct the concrete floor and erect the shell building. The floor plate of the building is expected to be approximately 10,000 square metres.

The equipment required for the plant has been sourced, specified and quoted for by Italian manufacturers through our engineer and, once ordered, will be delivered within 3 to 4 months to Kosovo. The processing plant is expected to be completed, within the original budget, in Q1 2014.

Sales and distribution

Fox Marble has acquired the rights to a yard in Carrara, Italy, complete with a gantry crane, to which it has shipped 10 blocks (115mt) of its red marble as well as sample blocks of its cream and white/grey marble. A dedicated salesman has been recruited and the Company expects to start selling block marble from this yard direct to block marble customers in the near future.   

As announced on 1 July 2013, Fox Marble signed its first offtake agreement with Pisani Plc to supply cut and polished marble. 

In addition, three sample blocks of its red marble are being sold and will be shipped to a potential long term customer in Libya.

Fox Marble has also received enquiries from potential customers in the USA, the UK, Korea, Africa and the Middle East.  In light of the volume and nature of enquiries, the Company expects to be able to announce further sales contracts in the near future.

Cash position

Fox Marble has £4.55 million of cash as at 30 June 2013 and has a £2 million loan note undrawn, which reflects the slower than expected rate of expenditure on the processing plant. 

Chris Gilbert, Chief Executive of Fox Marble, said:"We are pushing ahead with our growth strategy as we look to increase our control over marble deposits and expand our geographic spread in the Balkans. 

"We now have seven quarries in Kosovo and one in Macedonia under our control and we are making excellent progress in developing the business.  We recently signed an offtake agreement with Pisani in the UK and are on track to produce our first revenues by the end of this year.  Additionally to capture margins, our plans for our own polishing plant in Kosovo are on track with commissioning targeted for Q1 2014 as we look to build an internationally focused, profitable marble business."

Enquiries:

Fox Marble Holdings plc
Christopher Gilbert, Chief Executive Officer Fiona Hadfield, Chief Financial Officer	Tel: [phone]
Fox Davies Capital Limited (Nomad and Joint Broker)
Susan Walker/Jonathan Evans	Tel: [phone]
Sanlam Securities UK Limited (Joint Broker)
Lindsay Mair/Richard Goldsmith	Tel: [phone]
Buchanan	Tel: [phone]
Mark Court / Fiona Henson / Sophie Cowles	www.buchanan.uk.com

Notes to editors:

Fox Marble Holdings PLC is an AIM quoted natural stone extraction company operating in Kosovo and the Balkans region, with headquarters in the United Kingdom.

The Company has been granted mining licenses in relation to five separate marble quarries and completed a maiden JORC resource indicating an in-situ valuation of approximately Euro 16.5 billion.  Established in 2011, Fox Marble has access to over 300 million cubic metres of premium quality marble including white breccia and honey yellow onyx.

Fox Marble also has rights to extract grey marble from the Drini quarry and cream and white grey marble from the Malesheva quarry, both in Kosovo and white Sivec marble from the Prilep Quarry in Macedonia.

 

END

 

 

MSCZMGGNVKKGFZM