American Pacific Borates Ltd (ASX: ABR) shares will be on watch today following an update regarding the company's Fort Cady Borate Mine. At market close yesterday, the ABR share price finished the day at $1.86.
It will be interesting to watch how the company's shares perform today as investors digest this morning's update.
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What did ABR announce?
The ABR share price will be in focus this morning after the company released a positive update.
According to this morning's release, ABR reported that it has selected Matrix Service Co (NASDAQ: MTRX) to finish the Phase 1A construction at the Fort Cady Borate Mine.
Established in 1984, Matrix is focused on construction, maintenance and fabrication services primarily across the North American region. However, the company extends its reach in energy and industrial markets throughout the United States, Canada, South Korea, and Australia.
ABR stated that it has begun discussions with Matrix to ensure timely completion of the project. It's estimated the works will be completed sometime in the third quarter of the 2021 calendar year. ABR also highlighted that it has a healthy cash balance of $67.3 million as of 31 January, to fully-fund the first phase of the project.
Furthermore, ABR noted that it intends to retain Matrix for the remaining three production phases at the Fort Cady Borate Mine.
Management commentary
ABR CEO and managing director Mike Schlumpberger welcomed the partnership, saying:
We are delighted with the appointment of Matrix to complete the construction of Phase 1A of our Fort Cady Borate Mine. Matrix is a leading North American industrial engineering and constructor contractor headquartered in Tulsa, Oklahoma. Matrix's core values of safety and community involvement align perfectly with ABR's core values and intention to ensure the mine is delivered safely and with positive community involvement.
This is another important step in the fulfilment of our aspiration to become a globally significant producer of borates and specialty fertilisers.
About the ABR share price
Over the past 12 months, the ABR share price has performed well for investors, gaining more 280%.
The company's shares dipped to a 52-week low of 14.5 cents in March, before storming higher.
Just last month, ABR shares reached an all-time high of $1.88, and are within a whisker of that record today.
At the present share ABR price, the company has a market capitalisation of around $697 million.
