Strategic Alliance for Sustainable Limestone in UK

1 July 2024

(EPIC: SRC / Market: AIM / Sector: Construction Materials)

SIGMAROC PLC

 ('SigmaRoc', the 'Group' or the 'Company')

SigmaRoc and Duo Group Forge Strategic Alliance

to Revolutionise Sustainable Limestone Aggregates Supply in the UK

SigmaRoc, the Northern European quoted lime and limestone group, is pleased to announce it has entered into a 10-year ground-breaking strategic alliance with Duo Group to produce and sell sustainable limestone aggregates in the UK market. This 10-year agreement has the potential to generate incremental revenue of over £150 million over the course of the alliance, whilst significantly reducing SigmaRoc's environmental impact through the repurposing of limestone quarry waste.

Under the terms of the agreement, Duo Group has agreed to establish state-of-the-art processing plants at up to seven SigmaRoc limestone quarries to reprocess historically uneconomical quarry tip waste into a premium construction material. The process therefore advances SigmaRoc's ambition of utilising 100% of the resource it quarries.

Innovative Waste Processing

Quarry tips, also known as spoil tips, are accumulations of previously uneconomical processable material removed by the quarrying operations. By repurposing this previously overlooked resource, using state-of-the-art processing equipment installed by Duo Group, the Strategic Alliance aims to extend the operational life of quarries, conserve natural resources, and align with sustainable development goals. This initiative also supports SigmaRoc's ambition of utilising 100% of the resource it quarries, ensuring a more sustainable future for the construction and infrastructure sectors.

Alliance Structure

Under the agreement, Duo Group will establish large scale state-of-the-art reprocessing plants to cover material preparation and processing, load and haul, plant operation, and material dispatch. SigmaRoc will put at the disposal of the Strategic Alliance all unprocessed "tipped" materials which previously held no commercial value.

Martin McWilliams, Group Managing Director of Duo Group, commented:

"We are delighted to enter into this agreement with SigmaRoc. SigmaRoc has become a major player in recent years in the UK and Northern Europe. They have a clear roadmap on their growth journey and their ambition to reach 100% utilisation of all production materials. We are excited to be part of this journey. We share equal values in sustainability and innovation, and together, we can achieve significant milestones together by reducing the environmental footprint of the aggregates industry and helping to meet the sector's ESG targets."

Michael Roddy, Group Managing Director of the North West Region at SigmaRoc, commented:

"We are delighted to partner with Duo Group on this project. This partnership marks another significant step forward in our commitment to sustainability."

Charles Trigg, Chief Technical Officer at SigmaRoc, commented:

"This is exciting news for the Group, proving both our ability to drive increased value as well as bringing us closer to achieving our goal of 100% utilisation of all production materials."

Information on the Company is available on its website, www.sigmaroc.com.

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About SigmaRoc plc:

SigmaRoc is a quoted lime and limestone group targeting quarried materials assets in the UK and Northern Europe.

Lime and limestone are key resources in the transition to a more sustainable economy. New applications for lime and limestone products as part of a drive for sustainability include the production and recycling of lithium batteries, the decarbonisation of construction including through substitution of cementitious material and new building materials, and environmental applications including lake liming, air pollution and direct air capture.

SigmaRoc seeks to create value by purchasing assets in fragmented materials markets and extracting efficiencies through active management and by forming the assets into larger groups. It seeks to de- risk its investments through the selection of projects with strong asset backing.

About Duo Group:

Duo Group is a leading provider of material handling and processing solutions, with a strong focus on innovative technology and sustainability. With extensive experience in the aggregates industry, Duo Group is dedicated to reducing environmental impact while enhancing operational efficiency.

Information on the Company is available on its website, www.duogroup.co.uk