chart, page-2

Murchison Metals Ltd - 1Q FY09 Production Report
Stock Code: MMX Recommendation: HOLD
Share Price: $0.575 12M Price Target: $0.90 EPS Change: FY09: -19.1%
FY10: -17.3%
• Event: Production quarterly. Ore shipped from Jack Hills Stage 1: 352kt (GSJBW: 438kt). Murchison is
primarily a developer who is a partner in the Jack Hills Stage 2 iron ore project in the Midwest. The production
from Stage 1 is immaterial in scheme of things.
• Earnings and Valuation Impact: We have updated our earnings estimates to reflect the cash flow spent
during the quarter and the number of shares at the end of the period.
• Investment View: We have no change to our HOLD recommendation. While there are significant headwinds in
terms of getting the project up and running as well as the current negative sentiment towards the pure play
metals (notably iron ore) space. However, MMX is in a strong cash position and has a large project in Jack Hills
which could make it appealing from a corporate perspective.