Jan. 26, 2011 – Sales at the Quadling Quarry ("Quadling") in the last quarter have held up well and are ahead of management expectations. Despite adverse weather conditions in the area, Quadling's close proximity to Highway 1 continues to provide a competitive advantage with recent sales figures approaching levels seen in the summer months.
The increase in Quadling's average sales price, which was established during the summer, has been sustained and sales of the higher specification materials have increased.
PPA has begun drilling into a higher quality core rock rather than the previous weathered stone at Quadling. This has resulted in down hole drilling for rock blasting which is more efficient and cost-effective than pioneering drilling. The Company has also established employee performance targets at Quadling. As a consequence of these two changes, Quadling's production costs have decreased; drilling and blasting costs have been reduced and the Company is producing a higher quality stone for crushing. This has resulted in improved gross margins and higher cash generation from the quarry. | READ MORE
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