09:21 27.04.2021

Concorde Capital decides to develop amber project with partners instead of selling it

2 min read
Concorde Capital decides to develop amber project with partners instead of selling it

Ihor Mazepa's Concorde Capital investment company, which last autumn put up for sale Soniachne Remeslo Center LLC - an amber deposit with reserves of 60 tonnes - for $ 5 million, decided to develop this project together with partners.

"We've analyzed everything and decided to develop the Soniachne Remeslo project together with our partners. This is a unique company - the only one in Ukraine that has received all licenses and permits for the extraction of amber from the state," Mazepa, the founder and CEO of Concorde Capital, told Interfax-Ukraine.

According to him, it is planned to start production in May this year.

"The project is designed for 5-6 years, after the development of the deposit, we will restore the forest on its territory," Mazepa added.

According to the investment proposal of Concorde Capital from September last year, the license for the extraction of raw amber at the Volodymyrets Skhidny deposit was issued in 2009 and is valid until 2029, the licensed area is 83.9 hectares. In 2014-2017, some 8.5 tonnes were extracted from 18 hectares, which now require reclamation, there are no reserves for 5-6 hectares.

The company estimates a realistic production rate of 7 to 12 tonnes per year. The price of the asset proposed in September last year assumed an investor's return on invested capital at the level of 66% per year and a payback period of one and a half years at an average weighted price of amber of $ 600 per kg.

In September last year, an auction was announced for the sale of this amber project through ProZorro.Sale, which was supposed to take place in October, but it did not take place.

Concorde Capital is one of the leading Ukrainian investment groups, founded in 2004. It provides a full range of international brokerage and investment services. Using various financial instruments, the company raised more than $ 3 billion for Ukrainian companies in the field of metallurgy, automotive, real estate, as well as chemical, oil and gas, agricultural and pharmaceutical sectors.

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