Firering Strategic Minerals (AIM:FRG) has hot commissioned the third of eight planned kilns at its Limeco quicklime project in Zambia.
The AIM-listed company, an Africa-focused producer of quicklime and explorer of critical minerals, said the milestone marks Limeco's shift from breakeven into profitable production.
Kiln 3 began heating on 20 July, with first quicklime output expected within days, following renovation work that also saw the gasifier refired and Kilns 1 and 2 return to production.
Combined output from the three kilns is expected to exceed 200 tonnes per day, positioning Limeco among Zambia's largest high-quality lime producers, serving the mining, infrastructure, agriculture and industrial sectors.
Separate modifications to the hydration circuit aim to lift hydrated lime output beyond the current 100 tonnes per day.
Kiln 4 remains on track for commissioning in a few months.
"This represents the inflection point for Limeco, moving from an effective breakeven operation into profitable production, with the business expected to be cash flow positive by year end," said Youval Rasin, Chairman and Interim Chief Executive.
Firering has also completed its final option payment under the acquisition structure announced in May 2024, lifting its stake in Limeco from 41.7% to 45%.
With surface stockpiles nearly depleted, the company has dewatered the existing quarry, dropping water levels below previously blasted benches to secure easier access to feed while it develops a plan to widen and deepen the pit.
News Intelligence what this means for the company
Firering has hot-commissioned Kiln 3 at its Limeco quicklime project in Zambia, with three kilns now expected to produce over 200 tonnes per day and the operation shifting into profitable production by year-end. The company simultaneously completed its final option payment, raising its stake to 45% at a total acquisition cost of US$8.2m. This marks the inflection point the company has been targeting: Kiln 3 was scheduled for mid-July hot commissioning, and it has now arrived on track, with Kiln 4 commissioning expected within months.
The transition from breakeven to cash-flow positive production at Limeco, combined with Firering's now-majority-like 45% ownership stake, materially de-risks the company's near-term cash generation and validates the acquisition thesis. However, Firering remains an early-stage miner with exploration assets elsewhere; Limeco's ramp is a single operational milestone, not a transformation of the group's risk profile.
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