Bogala Graphite to start exploration at Rangala mines
Monday, 4 August 2014 00:43
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Bogala Graphite Lanka Plc said that it will start an exploration program at the Rangala mines.
The company said Rangala mines, which it owns 100%, are located eight kilometres southeast of the Bogala mines.
“Significant commercial quantities of high purity graphite have been identified at the Rangala deposit, which last operated as an active mine in 1983. The company has applied for a mining license from the Sri Lanka Geological Survey and Mines Bureau for the Rangala deposit,” Bogala Graphite Lanka Plc said.
The financial impact of opening the Rangala mine has not been evaluated as yet, the company said in a filing to the Colombo Stock Exchange.
Bogala Graphite Lanka Plc is the largest producer of high purity vein graphite, which has very high levels of electrical and thermal conductivity due to its crystalline structure.
AMG Mining AG is the majority shareholder (90.3%) of the company. AMG is one of the world’s leading graphite producing and refining companies with mining activities in Asia, Europe and Africa. It is a subsidiary of AMG Advanced Metallurgical Group NV of Amsterdam.
In the first quarter of FY14, Bogala Graphite Lanka plc saw its revenue rise by 38% to Rs. 164 million and net profit almost doubling to Rs. 30 million from Rs. 16 million a year earlier. The first quarter bottom line is above full year result in 2013.
In 2013, the company’s revenue dipped by 3.7% to Rs. 536 million. This was mainly due to change in the product mix in sales resulting from the different grades of graphite that the company was able to extract during the early part of the year. However, the company ended the year with a Profit After Tax (PAT) of Rs. 24.8 million (up from Rs. 23.8 million) in 2012.
