Critical Mineral Resources plc has signed its first exclusive off-take contract for high-grade antimony ore mined by a small scale operator in Morocco.
UNRIVALLED
The renewable six-month contract covers purchase of all crude ore greater than 10% antimony mined at the source.
The company, whose main focus is exploration for silver, said that the antimony ore was a “saleable semi-massive stibnite, antimony sulphide, product”.
CMR noted that the price of antimony had more the trebled over the past year due to an “acute” shortage of supply, reflecting export restrictions from China.
The country produces some 48% of global mined antimony, as stibnite ores and concentrate, and in recent years more than 50% of refined antimony, as antimony trioxide and antimony metal, added the company.
“This exclusive supply agreement creates a new opportunity for CMR to occupy a space in a specialist commodities market where the supply – demand dynamic is becoming ever more problematic for Western countries.
“Antimony trading is expected to generate an above average gross profit margin when compared with other opportunities we are seeing.
“This initial agreement is the first of several transactions projected before the calendar year end.”
CMR established a trading arm in November with plans to export materials to international markets including Europe, Asia and North America expected to be outlined in the first quarter of 2025.
Chief executive Charlie Long added: “We are excited to be entering the antimony market, a commodity which is so critical at this time and which fits our strategy of diversification into trading.
“Not only will the commodities trading generate cash for the business, it will also add to our already excellent dealflow.
“[sic] Giving us unrivalled access to producing assets across Morocco, some of which will have potential for larger scale development.”