Bluejay Mining PLC (LON:JAY) is engaged in a number of positive discussions with potential off-take partners, it told investors in its full-year results.
Another bulk sample will be taken from the active beaches at Moriusaq, in northern Greenland, in 2018, where the current resource has been defined to supply final product parcels to customers.
READ: Bluejay will shortly commence fieldwork at Dundas with a view to delivering a significant resource upgrade
“We have strong confidence that, our product will be highly sought after thanks to a number of key attributes,” said Mike Hutchinson, the non-executive chairman of Bluejay.
These key attributes include the grade and size of the deposit at the Dundas ilmenite project, the simple extraction and processing method required plus the attractive location of Greenland, which offers the prospect of selling to both the European and North American markets.
“This accessible and strategic location means Bluejay's ilmenite is set to be much cheaper to ship than the majority of current ilmenite producers which are based in Africa, giving us significant competitive advantage,” Hutchinson maintained.
Bluejay is still at the pre-revenue stage, so the profit and loss account is not especially significant but for the record, the group, which recently changed its year-end, posted a loss before tax of £2.68mln, compared to a loss of £620,059 in the 12 months to the end of June 2016.
The group ended 2017 with cash of £2.90mln, up from £425,046 at the end of June 2016.
SPAngel repeats 'strong buy'
In a note to clients, analysts at SPAngel reiterated a ‘strong buy’ rating on the stock with a 48p price target.
They said the latest report “indicates strong confidence that Dundas will be highly sought after for high grade, low impurity and homogenous mineral sands.”
In lunchtime trading, Bluejay Mining shares were trading at 23.2p, down 1.3% on Wednesday’s close.