News: Metals X Limited talks FY2015 results

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Transcription of Finance News Network Interview with Metals X Limited (ASX:MLX) Executive Director, Peter Cook
 
 
Carolyn Herbert: Metals X Limited (ASX:MLX) is a diversified group exploring and developing minerals and metals in Australia. It’s Australia’s largest tin producer and a top ten gold producer. I’m Carolyn Herbert and joining me at the CEO Sessions in Melbourne is the company’s Executive Director, Peter Cook. Peter, welcome back to FNN.
 
Peter Cook: Thank you Carolyn.
 
Carolyn Herbert: The company has just released its results for FY2015. What were the highlights?
 
Peter Cook: All the arrows were pointing up. Revenue was up, EBITDA was up, net profit was up and of course the dividend was up as well, so a good year for us.
 
Carolyn Herbert: Tell us a bit more about the dividend. How has this changed from the same time last year?
 
Peter Cook: It’s up nine per cent; the dividend policy is 30 per cent of net profit after tax. I think in line with the Board’s philosophy that when we make money, we need to share it with our shareholders.
 
Carolyn Herbert: The gold division has been a particularly strong performer for the company in FY2015. How have you managed to achieve this given the lower gold price environment?
 
Peter Cook: US dollar gold price, which is the driver of sentiment in the market, has been lower. But with the fall in the Aussie dollar, the Australian gold price has actually been higher, so our margins have expanded. So really it’s a higher gold price environment for us today.
 
Carolyn Herbert: Can you tell us a little bit about the gold hedging program you’ve just announced?
 
Peter Cook: Sure, that’s managing our stay in business risk. We’ve hedged about 10 per cent of our current mining reserve. About 21 per cent of our forecast gold production, over the next three years at a price which locks in a margin of above $500 an ounce. So $1,638 an ounce is a great gold price.
 
Carolyn Herbert: How have your tin and nickel divisions performed?
 
Peter Cook: The tin operational has performed exceptionally well, however, that’s been in a tough price environment. So it was under our expectations for the year, really due to that low price environment, but production was good. And nickel was a development project and the nickel project; it’s sort of on hold due to a very very low nickel price environment.
 
Carolyn Herbert: What can we expect in terms of new acquisitions, going forward?
 
Peter Cook: We’re always looking. Certainly the business that’s Metal X is about buying assets, which have previously been unloved or poorly managed by other people. Buying them at a fraction of what their replacement cost is, and then operating them better. So we’re always looking, I can’t say there’s any on the immediate agenda, but we’re always looking. It’s across all commodities and it’s Australian focused.
 
Carolyn Herbert: Finally Peter, can you give us some guidance on what your outlook is for FY2016?
 
Peter Cook: Well it’s positive. Certainly higher middle price environments, higher gold price, we’re expecting higher tin prices. And that should translate into higher returns, across all those measures and again, for our shareholders, a higher dividend.
 
Carolyn Herbert: Peter Cook, thanks for joining us on FNN.
 
Peter Cook: Thanks very much Carolyn.
 
 
Ends