Cancana Resources (CNY.V) has reported it has received an order for 1,200 tonnes of its end product from a ‘key Brazilian fertilizer manufacturer’. That’s a very important achievement as this fist order will very likely lead to more orders if the end-user is satisfied with the quality of the product. Cancana hasn’t released any details about the price it will receive, but we expect the proceeds to be approximately C$300,000 based on a 30% premium on the Manganese price per dmtu.
Meanwhile, the Rio Madeira plant has once again achieved a production record after producing in excess of 2,000 tonnes of manganese, proving the ramp-up is definitely going according to plan, increasing the confidence of potential offtake partners in securing a deal with Cancana. Cancana has also received all necessary permits to re-open the Jaburi plant and we expect this plant to be up and running within the next few weeks.
Disclosure: The author holds a long position in Cancana Resources. Cancana is a sponsor of the website. Please see our disclaimer for current positions.