London-listed Critical Mineral Resources has announced its first exclusive offtake contract.

The company recently signed an agreement for the purchase of high-grade antimony ore, mined by a small-scale operator in Morocco.

The company has agreed an exclusive, renewable six-month supply contract to buy all crude ore mined at this source.

The antimony ore is a saleable semi-massive stibnite product.

The company points out that the antimony metal price has more than trebled over the past year owing to an acute shortage of supply, primarily reflecting export restrictions from China, which produces about 48% of global mined antimony (stibnite ores and concentrate) and, in recent years, more than 50% of refined antimony (as antimony trioxide and antimony metal).

It cites Fastmarkets’ benchmark pricing, which shows that antimony ingot Rotterdam hit $38 000/t in early December, up from $11 500/t last year.

The company says this exclusive supply agreement creates a new opportunity for it to occupy a space in a specialist commodities market.

Antimony trading is expected to generate an above-average gross profit margin when compared with other opportunities that the company anticipates.  

This antimony contract is consistent with the company’s stated strategy of sourcing product from small and artisanal producers and, if necessary, upgrading lower-grade products using its partner’s operational concentrating facility.

The company’s commodities division was created to provide a means of near-term cash flow and profits to support the core mission of acquiring and developing advanced mine development opportunities in Morocco.

The trading arm of the company is indicated to be fully operational, ready to expand its activities and the scope of materials to be sourced and supplied to customers.

Exports are planned to Europe, Asia and to other international markets including North America.

This initial agreement is the first of several transactions projected before the calendar year end.

The company will deliver a further trading update before the year end and expansion plans will be outlined in the first quarter of 2025.

“We are excited to be entering the antimony market, a commodity which is so critical at this time, and which fits our strategy of diversification into trading,” says CEO Charlie Long.

He posits that the commodities trading would generate cash for the business, and augment its deal flow.

Antimony supply is classified as critical by the US and the EU.

Both regions are currently reliant on antimony imports which are used in batteries, semiconductors, alloys, flame retardants, communication equipment, ammunitions and defence equipment, the company points out.