1. So $13.5m per year Cash flow after costs at a AU/US Exchange rate of $80c according to company projections. Current -defined- resource for 6mths production only of 45kt. However they can mine year round wet or dry season if they find more min sands deposits nearby or expand the existing resource at Lethbridge.
In addition, I see MZI has lease or exploration licence rights to around 250-300km approx of Tiwi islands Coastline (Current Lethbridge is around say 5km?). With much of that ground containing target areas for mineral sands (yellow on map) and are as yet untested by drilling. I assume they have taken grabs. See yellow bits on Tiwi Map (Source: Dec 09 Qtrly) So potentially huge exploration upside all on Tiwi Islands.
They are doing a feasibility study on 1 tree point as we speak to the south of the island as next target hopefully giving them an additional 2-3 years production life in addition to the 45kt from Lethbridge area. So they could well be producing 80kt/year if they prove up One tree point.
Late this year Keysbrook in WA will be mined as development approvals have been granted. The Keysbrook Project consists of a low overburden and clay deposit, which includes approximately 40% leucoxene a high grade titanium product. Leucoxene is used as an opacifier in paints, plastics, paper, and textiles, and is in demand as a higher quality titanium feed source. Prices for leucoxene are linked to the broader titanium mineral markets.
No detailed costings are available on this project that I have found.
Indonesia mine is on Care and Maintenance
MZI Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
