Shares in Pacific Lime and Cement Ltd (ASX: PLA) are moving higher on Monday after the company announced a major commercial agreement.
In late afternoon trade, the Pacific Lime and Cement share price is up 3.51% to 29.5 cents. That rise builds on recent momentum, with the shares climbing more than 11% over the past week.
Let's take a closer look at the release.
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Major customer secured for Central Lime Project
Pacific Lime and Cement announced it has signed a long-term quicklime offtake agreement with Newmont Corp (ASX: NEM), one of the world's largest gold producers.
Under the agreement, Newmont will become a cornerstone customer of the company's Central Lime Project in Papua New Guinea. Contracted volumes are expected to represent about one-third of the project's nameplate quicklime production capacity once operations begin.
Quicklime is used in gold processing and other industrial activities. By locking in a large foundation customer, Pacific Lime and Cement has moved closer to commercialising what is expected to be Papua New Guinea's first domestic quicklime manufacturing operation.
Management said the agreement supports the development of local industry and reduces reliance on imported lime products. It also helps underpin the business case for the Central Lime Project as it moves closer to construction completion and first production.
Why this is important
Securing a customer the size of Newmont is an important step for a company that is still developing its main asset. It helps support future sales and could strengthen confidence among lenders, contractors, and other potential buyers.
The agreement is structured as a multi-year arrangement and will commence following construction completion and commissioning of the project.
Pacific Lime and Cement said it continues to progress discussions with additional domestic and regional customers as it advances towards first production.
Recent quarterly update
In its December 2025 quarterly activities and cash flow report, the company outlined ongoing progress at the Central Lime Project.
Construction activities are advancing, with work continuing across site preparation, infrastructure, and key plant components. The company is targeting first production after construction and commissioning milestones are achieved.
At the end of the December quarter, Pacific Lime and Cement reported cash reserves of approximately $54.6 million. This provides funding to support ongoing development and project-related costs.
The company does not currently generate operating revenue and remains in the development phase.
What investors will watch next
With a cornerstone customer now secured, the next key milestones will be construction progress, commissioning updates, and any additional offtake agreements.
The market appears to have welcomed the Newmont agreement. Shares are up 3.51% today and more than 11% over the past week as the Central Lime Project edges closer to production.
