https://www.miningweekly.com

DuSolo launches strategic review following weaker-than-expected fertiliser sales

25th August 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Brazil-focused DuSolo Fertilizers will implement several sales and production strategies in an attempt to increase revenues from its Bomfim mine after demand for its product failed to meet the company's expectations.

"In light of the current market conditions in Brazil and the effect it has had on the company's performance, DuSolo's new board and management have undertaken a strategic review of all operations," DuSolo CEO Darren Bowden advised in a statement on Tuesday.

To combat the demand dearth, DuSolo had drawn down its bridge loan facility as working capital as it started to accept forward sales contracts.

The Bomfim processing plant would also potentially be reconfigured to expand direct application natural fertiliser (DANF) output without installing additional hammer mills, saving the company about C$400 000.

After a longer-than-expected rainy season, the TSX-V-listed company had started excavating and processing DANF product at Bomfim in June.

However, DANF sales had been less than estimated, owing to soft fertiliser demand in Brazil. Of the 81 100 t in signed commitments, only about 3 290 t of product had been delivered and a further 3 363 t would be delivered in the short term. All of these contracts were still in good standing, despite buyers being slow to perform as a result of soft market conditions.

This was a result of weaker crop prices, the lower purchasing power of the real currency and delayed credit availability from the government to farmers and agribusinesses.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.064 0.101s - 90pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: