Company that mines graphite in Mozambique at risk of bankruptcy

14 March 2016

Triton Minerals, an Australian company that operates graphite concessions in Cabo Delgado, northern Mozambique, could go bust after its shares ceased to be listed on the stock exchange and are being managed by appointed administrators, according to a number of statements issued on the company’s website.

The announcement of the appointment of new directors, on 3 March, came two days after the company published an update on its operations which indicated a change of focus from Balama to its project in Ancuabe, which it intended to develop with German company Graphit Kropfmuhl.

This decision stemmed from the fact that Ancuabe is located less than 50 kilometres from the deep water port of the city of Pemba, which has a container terminal in operation, good infrastructure and low costs for a mining operation.

The Sydney Morning Herald reported that it was this decision that led shareholders to sell off their stock, trading of which was suspended when reached 0.61 Australian cents, compared to a peak price of 54 cents on 1 April 2015.

In a statement to the market, Martin Jones, of Ferrier Hodgson (specialising in the recovery of struggling companies), reported the new directors were working with the previous directors to analyse the company’s accounts and ongoing operations before gathering shareholders in a general meeting to propose potential strategies to restructure the company.

Triton Minerals has eight mining licenses in Cabo Delgado, of which six have already been granted and two are still in the approval stage, comprising three major areas – Balama North and Balama South and Ancuabe – containing high quality graphite reserves . (macauhub/MZ)