It’s only a matter of time for Capital Metals
“…Prices are really good at the moment and we want to get into production as soon as possible. We are very close on the mining licence which is the key step to move forward…”
While the world sees alarming reports of rioting in Sri Lanka, and read about a country in crisis that owes £40bn to foreign creditors, the chief executive of Capital Metals says what you see on the screen isn’t wholly representative of what’s going on there.
He’s been to the country twice over the past few months checking on the progress of his Eastern Minerals asset which is one of the world’s highest-grade mineral sands projects.
He admits that while there’s upheaval politically, there’s a resolve internally to sort things out. The civil servants he’s been dealing with remain in position and Frayne says unrest has made the country and the investment community keen “for projects such as ours, foreign direct investment, foreign exchange earnings, export earnings.”
That’s the positive. The negative though is the company is at a permitting stage in its development and at the mercy of administrative processes which Frayne anticipates will slow down and impact the approval of the all-important industrial Mining Licence.
Frayne though is ready to go. “We feel we are very, very close to getting our mining licence. When our first permitting is put in place we’ve got a strategy to be in production within twelve months from there.”
Conversations are ongoing with a short list of offtakers and Capital Metals wants potential partners to have a more strategic role in terms of investing in the business “In one way, shape or form.”
The company remains well funded with over a million pounds in the bank and a low cash burn. In terms of the project Michael tell Sarah Lowther the outlook is extremely positive. “We’re in a very good position. Prices are really good at the moment and we want to get into production as soon as possible.”
Watch Michael talk to Proactive London’s Katie Pilbeam about the results from Capital’s independent preliminary economic assessment.
View the company’s corporate presentation from May 2022
Follow the company on Twitter @MetalsCapital
The author was remunerated but does not hold shares in the company