Interim results from Chromex Mining (AIM: CHX) underlined the substantial progress the company has in a relatively short space of time as it reported its first maiden profit for the six month period ended 31 March 2009.

Financial highlights included a profit before tax of £0.081 million (H1 2008: loss before tax £0.282 million) on turnover of £1.6 million (H1 2008: turnover nil). The swing to profit reflects Chromex Mining moving into production at the Stellite mine in South Africa. Chromex ended the period with £2.2 million in cash.

While the swing to a profit was noteworthy, investors were equally keen to hear an update on the construction of a processing plant at Stellite. Since initially entering production, Chromex Mining has sold its chrome ore direct into the market, but has long held the ambition of capturing more of the value chain by producing a beneficiated product. Today the company confirmed that the construction of the processing plant, which will primarily produce 44% Chromium oxide, is on schedule. First sales of chromium oxide are anticipated at the end of June. While Chromex completes the plant construction, mining has been put on hold to allow existing stockpiles to be used for the plant commissioning.

Additionally, AIM’s only chrome miner confirmed that it had secured an amendment to the Stellite Mining Right to allow it to extract Platinum Group Metals and gold. “Test work to confirm the economics of extraction and treatment will commence as soon as plant commissioning has been completed,” the company stated.

Perhaps one area of concern for shareholders is an ongoing challenge from Samancor Chrome over the Mining Right at Mecklenburg – Chromex’s second major project. Chromex reiterated that it believed the challenge was without merit, but that the case may not be settled until early 2010 as the legal process is “lengthy and drawn out”.

“Despite the delays caused by legal disputes we expect to be in a position to progress the development of the Mecklenburg mine by mid 2010, subject to market conditions,” Chromex added.

Shares in Chromex Mining climbed 5% as investor's cheered the positive update.

Chromex Mining

Chromex Mining plc (AIM: CHX) is an AIM quoted dedicated chrome company established to acquire, control and develop chromite mining and processing facilities. It currently has two key mining assets located on the Bushveld Complex in South Africa, which between them have total resources of approximately 41 million tonnes of chromite. Chromex is focused on growing its current resource base with near production projects to supply beneficiated chrome products into the ferrochrome and stainless steel markets. In addition the Company continues to review additional prospects.