Suvo Strategic Minerals Ltd (ASX:SUV) interim CEO Bojan Bogunovic speaks with Proactive soon after announcing it has received a prepayment of around US$430,000 from major Chinese kaolin customer ChaoZhou ChengCheng Industrial Co for about 900 tonnes of hydrous kaolin from the Pittong operations in Victoria. This prepayment is part of a take or pay offtake agreement, marking a significant milestone in the second year of an ongoing agreement. The deal stipulates a minimum order of 4,275 tonnes of hydrous kaolin over a three-year period.
Bogunovic said: We are pleased to receive this working capital injection from our valued customer, ChengCheng, who is looking to secure supply of our Pittong hydrous kaolin.
"October 2023 was the highest production month at Pittong since the acquisition by Suvo from Imerys S.A in 2021, and the prepayment comes at an opportune time.
"We are excited by the possible opportunity of increasing sales of our existing products, entering new markets and building on our 20-plus year relationship with ChengCheng.
"The ceramics industry represents roughly 50% of the entire kaolin market, sales of kaolin to this industry is not measured in thousands of tonnes but tens of thousands of tonnes.
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Suvo Strategic Minerals Ltd