Bass Metals Limited (ASX: BSM) operates as a metal concentrate producer. The Company provides base metals and minerals such as copper, zinc, silver, gold, nickel, and graphite.
The company has stated via release said that it outperformed its own guidance of the sales volumes for the month of November 2018. This achievement of the monthly sales target within a very short period of ramping up of the stage 1 production can be credited to the high-quality graphite concentrates as well as the quantum of sales and sales agreement affected for the concerned month.
Few of the noteworthy covenants of the sales agreement are – it will cover a range of the large and small flakes from the Graphmada operations for delivering to the US markets from December to February 2019. For this, the long-term sales agreement has been reached with the concerned buyers.
Thanks to these sales agreements, the company was able to sell the majority of the ramped-up production done during the phase of July and August 2018. A part of these sales was also affected to the buyers in Europe and India on favourable terms and thus expanding the markets to which the company is catering to at present. All these sales were made by the company in the ordinary course of the business and none of them are individually material to the firm.
As regards to the sales outlook, the firm is encouraged with the kind of demand that it is witnessing for its premium large & jumbo flake product with, as the majority of these products are witnessing overwhelming demand from the customers. The company expects this strong demand to continue in the near future that will adequately support the prices to be in the range of US$1,150 - $1,950. Although the company has witnessed some minor delays in the completion of the sales orders and thus reduced some of its pricing for fine flake product. However, the firm believes that the demand for its premium product remains robust enough and has maintained the forecast for an Average basket price of US$900/ mt. for the fiscal year 2019. The firm continues to heavily concentrate upon the broadening of the sales channels for both, stage 1 and the proposed stage 2 concentrates.
Now coming to the production outlook, post the months of the ramp-up of production, the company is now able to achieve substantial production of the large and jumbo flake products. Going further the company expects that it will continue to produce between 40-50% of its premium product in the large flake category at the pre-decided carbon levels and due to this the company will be able to garner the prospective buyers in the near future.
Meanwhile, the share price of the company has fallen by 46.88 percent in the past six months as on 4 December 2018. The company’s shares traded at $0.015, down by 11.765 percent with a market capitalization of circa $43.17 Million as on 5 December 2018 (AEST 04:00 PM).
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