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Cancana Resources shares rise as BMC reports record sales

Last updated: 11:32 14 Apr 2016 EDT, First published: 06:32 14 Apr 2016 EDT

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The group produced 2,558 tonnes, which was a 107% increase from the 1,237 tonnes during the same period last year...

Cancana Resources Corp's (CVE:CNY) Brazilian joint venture reported record production and sales in the first quarter of 2016, sending shares in Toronto up over 8%.

During the first quarter, BMC,  the joint venture (JV) with Ferrometals, shipped sales of 4,354 tonnes of manganese -  a 15 fold increase compared with the same period in 2015.

The group produced 2,558 tonnes, which was a 107% increase from the 1,237 tonnes during the same period last year.

Output was down compared to directly previous fourth quarter, but was in line with expectations for the rainy season, the firm noted.

Cancana's president and chief executive Anthony Julien, told investors: "BMC has started 2016 where we left off in 2015, and continues to achieve sales and production growth compared to the comparative quarter from the prior year.

"Our sales figures are steadily increasing while production has outperformed the comparative quarter, despite the wet season closure of Rio Madeira for infrastructure improvements.

"The JV is also pleased to report that manganese prices, which started the year at historic lows, have recovered over 100% during 2016."

The price of 44% manganese was $1.86 per dry metric tonne as at January 4 this year but has recovered to $4.01 per dry metric tonne unit as of April 1, the company noted.

Earlier this month, the firm negotiated the sale of 4,500 tonnes to a Brazilian customer, expected to be shipped during the second quarter of 2016.

Current sales orders for 2016 total 15,057 tonnes and the stockpile of manganese mineral product at March 31, 2016, was 17,410 tonnes.

At Rio Madeira, now fully operational, in the first quarter,  the joint venture completed the new water reservoir, tailing ponds and water recycling improvements that had limited its production capacity.

It also relocated and rebuilt the electrical generating plant and electrical feed lines to ensure a safe and reliable supply of electricity.

Shares in Cancana added 8.11% to stand at $0.20.

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