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(Sharecast News) - Firering Strategic Minerals said on Monday that its Zambian lime operation has secured a two-year offtake agreement with a major international copper producer and reached breakeven in March, marking a key step in its operational ramp-up.
The AIM-traded company said its Limeco subsidiary was awarded a contract to supply a minimum of 1,350 tonnes of hydrated lime annually, formalising an existing commercial relationship.
April deliveries had already reached around one-third of the contracted annual volume, with current run rates indicating that actual offtake could significantly exceed the minimum commitment.
"This is an important moment for Limeco; formalising a two-year offtake contract with a major international copper producer -a customer we have been supplying for several months - validates Limeco's product quality and position as a reliable supplier to the Zambian mining industry," said chairman and interim chief executive Youval Rasin.
"Reaching effectively breakeven in March, alongside a rapidly expanding commercial pipeline and the successful modifications to Kiln 2, gives us real confidence in the trajectory of the business."
Firering said the shift in product mix towards higher-margin hydrated lime, which commands a 20% to 30% premium to quicklime, was expected to support profitability as volumes scale.
The group said it was also developing a high-purity calcium carbonate product, with commissioning targeted for the third quarter of 2026 to open new end markets.
Operationally, Limeco was continuing to ramp up production, with Kiln 2 now outperforming Kiln 1 after modifications and operating at close to target capacity.
Kiln 1 had been temporarily taken offline to implement similar upgrades, while commissioning of Kiln 3 and Kiln 4 remain#ed on track for the third and fourth quarters of 2026, respectively, which was expected to drive a material increase in output.
The firm said it maintained sufficient stock to meet current demand and is advancing a dewatering programme at its open pit following heavy rains, enabling preparatory work ahead of mining later in the year.
Rasin added that "with multiple growth levers in motion, Limeco is well placed to deliver a step-change in output and earnings in the near term".
Firering also noted that it was continuing to progress third-party interest in its Atex lithium-tantalum project in Cte d'Ivoire, with further updates expected in due course.
At 1221 BST, shares in Firering Strategic Minerals were flat at 1.25p.
Reporting by Josh White for Sharecast.com.
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