3 May 2013
SUNKAR RESOURCES PLC
("Sunkar" or the "Company")
Re: Earth Moving Contract Win
Sunkar Resources plc (AIM:SKR) is pleased to announce that its wholly owned subsidiary, Temir Service LLP ("Temir"), has signed a new earth moving contract with the general contractor building the Beineu - Tassai railway line in Western Kazakhstan. The value of the contract is estimated to be approximately KZT 1.85 billion (US$12 million at current exchange rates). The Company expects to receive a pre-payment, amounting to 30% of the total contract value, within 20 business days from the contract date.
Temir is currently executing its first earth moving contract, which was concluded with the same general contractor, in October 2012, for another stretch of this new railroad. It has finished approximately 65% of the total workload of this first contract, and Temir expects to complete most of the works associated with this contract by the end of June 2013. Operations under the existing contract were suspended for 2 weeks during December 2012 and 3 weeks during January 2013 owing to adverse weather conditions.
This new contract is significantly larger than its predecessor. As the deadline for the completion of the works under the new contract is November 2013, Temir's management intend to engage qualifying third parties to carry out certain parts of the works.
Mining Operations:
Temir completed its mining programme for 2012 during the third quarter of that year. It used the period from the completion of its 2012 mining operations until the start of work on the first earth moving contract to start pre-stripping operations for the 2013 mining programme. Consequently its management team are satisfied that it can complete the 2013 mining programme during the third and fourth quarter of the current year with the equipment on site.
Serikjan Utegen, the Company's CEO, commented:
"Our principal goal remains the development of the Chilisai Phosphate project. However, the revenue from these earth moving contracts has and will continue to make a significant contribution to the working capital of the Company. In addition, the Company is confident that it is well placed to retain its core qualified personnel in order to be able to sustain its mining business and fulfil its mining obligations for 2013."
For further information, please contact:
Sunkar Resources plc Teck Soon Kong, Chairman Serikjan Utegen, CEO | Tel: +44 20 7397 3730 |
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Strand Hanson Limited Simon Raggett Stuart Faulkner David Altberg | Tel: +44 20 7409 3494 |
Bankside Consultants Simon Rothschild | Tel: +44 20 7367 8888 |
or visit: www.sunkarresources.com
Notes to Editors:
Sunkar Resources plc
Sunkar Resources plc, through its wholly owned subsidiary Temir Service LLP, operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan. Temir Service LLP holds a Subsoil Use Contract to part of the Chilisai Phosphate Rock Deposit. The contract area is estimated to contain 1,128 million tonnes of phosphate ore.
Sunkar's strategy is to build a world class integrated ammoniated phosphate fertilizer plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit and access to sulphur from the nearby North Caspian oil and gas fields.
Beineu - Tassai Railway Line
The Beineu - Tassai railway route is a part of the planned major Trans-Kazakhstan Beineu - Zhezkazgan railroad, which will significantly shorten the connection between the Mangistau peninsula and the Central and Southern regions of the country. The estimated length of this new railroad is 988 km and completion is planned for 2015.
