Valence Industries Signs 6 New Graphite Sales Contracts
16.03.2015 | ABN Newswire
Perth, Australia (ABN Newswire) - Valence Industries Ltd. (ASX:VXL) is pleased to announce it has signed 6 new sales contracts for the supply of more than 8,000 tonnes of flake graphite.Signed sales contracts are for graphite concentrate across all sizes (+35 to -300 Mesh) and purities (90% to 95%), and are in line with the Company's sales strategy to manufacture and sell graphite to the required specifications of customers. The contracts are consistent with Valence Industries' current and forward production profile. Contract pricing is structured based on grade and quality and is consistent with the Company's expectations.
Valence Industries' customers are purchasing Uley GraphiteTM for applications from heavy industry (refractories, foundries and lubricants) through to advanced technologies (batteries and electronics) and even for bio-medical applications. Due to the confidential nature of the contracts, further customer information cannot be disclosed.
With volumes equivalent to 100% of year one production allocated, these new sales support the strong growth path set for the next 18 months to deliver increased volumes and value-added advanced manufacturing.
Full commissioning of the Uley Phase I plant is scheduled to be completed by September quarter 2015. Valence Industries expects first export shipments of graphite to commence later this month.
New Customer Qualifications
In the first quarter of 2015 Valence Industries has qualified 9 new customers.
Customers for flake graphite require samples from actual production facilities in order to qualify the specific grade and quality of graphite for their own production requirements. Test samples from lab scale or test scale plants are not sufficient.
Valence Industries continues to receive positive feedback from customers in relation to the quality of the Company's graphite product and importantly, the low level of impurities. These 9 new customers will receive flake graphite concentrate from production during 2015 and are also positioned to receive flake graphite from Valence Industries' increased output in 2016.
A further 6 customers have received production samples of Valence Industries' flake graphite and are in the process of completing their internal qualification processes.
About Valence Industries:
Valence Industries Ltd. (ASX:VXL) is an industrial manufacturing company producing high grade flake graphite products for distribution and sale to global markets. Valence Industries owns established processing facilities and infrastructure to manufacture a wide range of graphite product lines for multiple applications and multiple industries. Valence Industries produces and sells its graphite products from its Uley Graphite facilities in regional South Australia for delivery to diversified markets for graphite in the Asia Pacific, Europe and North America.
Contact:
Valence Industries
Corporate Headquarters
Investor Relations
T: +61-8-8418-8564
E: info@valenceindustries.com
www.valenceindustries.com