EV Resources has locked in agreements covering more than 50% of its Tecomatlán Processing Plant's feedstock capacity through four non-binding MOUs, advancing its path to near-term antimony production amid global supply tightness.
- Four MOUs secure 2,330–2,430 tonnes per month of antimony feedstock
- Feedstock sourced from diversified regional miners across Puebla, Oaxaca, and Guerrero
- Tecomatlán Plant dry commissioning complete, targeting production in second half 2026
- Additional MOUs in advanced negotiation to boost throughput
- Optimization studies underway to enhance concentrate grade and value
Feedstock Pipeline Secures Majority of Tecomatlán Capacity
EV Resources (ASX:EVR) has taken a significant step towards operationalising its Tecomatlán Processing Plant in Mexico by signing four non-binding Memorandums of Understanding (MOUs) that collectively cover between 2,330 and 2,430 tonnes per month (tpm) of antimony ore feedstock. This volume represents more than 50% of the plant’s planned operational capacity, based on a 28-day month, positioning EVR well to commence sustainable operations once the plant upgrades are completed.
The agreements diversify feedstock sources across regional miners in the states of Puebla, Oaxaca, and Guerrero, validating EVR’s hub-and-spoke strategy which aims to reduce transport costs for miners currently shipping ore up to 1,200 kilometres away to distant smelters. This supply chain model is designed to benefit both EVR and local miners by providing a low-capital pathway to production and potential near-term cash flow.
Strategic Supply Agreements and Operational Milestones
Among the MOUs, a key supplier located just 8 kilometres from the Tecomatlán Plant has the capacity to deliver up to 2,000 tpm grading around 5% antimony (Sb). This supplier has also proposed selling a 400-tonne stockpile of high-grade ore at 16% Sb, which EVR is evaluating as potential feedstock for commissioning activities ahead of full production.
EVR has already completed dry commissioning of the plant’s grinding circuit, a critical milestone that brings the company closer to first concentrate production targeted for the second half of 2026. The Phase 1 two-stage gravity concentrator is designed to process mixed-state ore with metallurgical recoveries to date of 90.8% and concentrate grades ranging between 22% and 36% Sb.
Ongoing optimisation work includes third-stage cleaning tests to potentially enhance concentrate grades via simple shaker tables or similar methods, which could improve concentrate marketability and value if the cost-benefit analysis proves favourable.
Expanding Feedstock Options and Production Potential
EVR is also in advanced negotiations for a fifth MOU expected to further bolster feedstock volumes ahead of the plant’s 150 tonnes per day nameplate capacity. Additionally, the company is assessing other ore-producing properties in Oaxaca that could materially increase feedstock supply, enhancing the hub-and-spoke business model’s scale and resilience.
All four current feedstock providers possess higher-grade antimony ore, which EVR may secure as part of a vertically integrated supply strategy. However, the company cautions that the MOUs remain non-binding and subject to due diligence, metallurgical testing, and definitive contract execution. Ore grades cited are based on supplier declarations and have not been independently verified under JORC standards.
Positioning Amid Global Antimony Supply Constraints
EVR’s Managing Director Mike Brown emphasised the strategic importance of securing over half the plant’s feedstock capacity, describing it as a major de-risking milestone in the company’s transition from developer to producer. He highlighted the plant’s role in addressing acute global antimony supply shortages by providing a low-CAPEX, regional processing hub that alleviates logistical challenges for local miners.
The company’s broader portfolio, including the Los Lirios Antimony Project 50 kilometres from Tecomatlán, offers potential for high-grade resource development to support longer-term production growth. EVR is also progressing regulatory approvals, including grid connection, which will reduce operating costs and facilitate sustainable plant operation.
Bottom Line?
Securing over half of its feedstock needs through MOUs marks a pivotal step for EVR’s Tecomatlán Plant, but converting these agreements into binding contracts and optimising concentrate quality remain critical hurdles before production and cash flow can materialise.
Questions in the middle?
- Will EVR successfully convert non-binding MOUs into definitive supply contracts?
- How will metallurgical testing and concentrate optimisation impact final product grades and marketability?
- Can additional feedstock sources from Oaxaca and advanced negotiations further increase plant utilisation?