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UPDATE - Stratmin sees steady production growth at Loharano

Last updated: 13:06 09 Mar 2015 GMT, First published: 14:06 09 Mar 2015 GMT

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---ADDS BROKER COMMENT---

StratMin Resources (LON:STGR) reported steady monthly production growth at its Loharano graphite mine, while sales for February came in at 150 tons.

That compares with 44 tons sold in January this year from the Madagascar mine.

Wet graphite produced was 360 tons (January: 302 tons), which after going through the drier reduced to 130 tons (114).

Managing director Manoli Yannaghas said: "The plant continues to see production grow steadily and, with secure sales contracts in place, the company can build a stable monthly production base.

"The new milling and screening capacity is now operational and I look forward to updating the market on its developments in the next update."

Northland noted that production numbers for the year to date were well below the broker's expectations, and has lowered its target price to 13.1p but repeats a 'buy' rating.  Shares are currently changing hands at 4.5p so the target still represents hefty upside.

The broker has downgraded its production forecasts to around 2,900 tonnes in 2015 and reduced the revenue forecast to £1.9mln from £3.7mln previously.

This moves the company to making a loss of £0.4mln from a previous forecast profit of £0.5mln, the broker noted.

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