Asia Broadband Inc. (OTCMKTS:AABB) has announced on May 04, 2022 about setting the completion timeline for its facilities retrofit production upgrade on its mining property in the Tequila region of Mexico. The upgrade program should be completed with an extra 50 tons per day (tpd) production capacity available within 6 months. Mill capacity is to be around 100 tpd by that time!
Market Reaction
On Wednesday, AABB stock moved down 5.32% to $0.0890 with more than 6.54 million shares, compared to its average volume of 13.86 million shares. The stock moved within a range of $0.0879 – 0.0945 after opening trade at $0.0943.
The company is even planning a large-scale expansion of its production and processing facilities to begin installation later this year. These facilities will have substantially increased throughput and metals extraction, due to utilizing the advances in mining equipment automation and efficiency.
Thanks to this added production volume at a lower cost per ton, it will have a significant impact on the company’s gross profit margin going forward. Apart from the Tequila property, it is expecting a geological assessment report in the coming weeks prepared by a qualified professional person. It will allow the company to maximize its exploration, development and resource expansion program as well as facilitate production efficiencies and planned processing equipment upgrades and additions.
Chris Torres, the Company President and CEO states that they are thrilled to reach the point where the production facilities retrofit at Tequila can quickly double production and build on extraction efficiencies. It provides the base to plan and build out a large-scale expansion to their processing plant.
Key Quote
“The completion of our production facilities retrofit at Tequila will double our production and also add extraction efficiencies. We are excited to reach that point because it will provide the platform to plan and build out a large-scale expansion to our processing plant,” stated Chris Torres, the Company President and CEO.
Traders Review
AABB stock is trading below the 20-Day and 50-Day Moving averages of $0.0956 and $0.1026 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.1305.
