Ann: Keysbrook Project Financing Due Diligence co, page-18

re: Ann: Keysbrook Project Financing Due Dili... poirot - thanks for the words. Sorry wasnt trying to be convincing but just passing on the words of Tom Casey, Chairman and Chief Executive Officer of Tronox. Tronox are the world’s largest fully integrated producer of titanium ore and titanium dioxide (TiO2), with HQ in the USA and mines in Australia & South Africa, amongst others. He is well regarded and is obviously bias but still at the cutting edge of what id happening of TIo2 markets. I posted to add another view to MZI latest ann., where they talked about prices improving in the 2nd half of the this year. To access his views go to

http://investor.tronox.com/

and look up the latest earnings report. Leucoxene is tied to the Rutile price. Because of the high price of Rutile in 2012, company's have been able to mix in other substitues to keep their costs down. But they cannot do this for ever because eventually their product quality is comprised. Hence the destocking he talks of is coming to a end.

This is also supported by Jack Blumenfrucht, another person who is well respected for their views in TiO2 world. This is what he said a couple of weeks back -

"Re TiO2 prices, world prices are still coming down. I do not see the situation improving until May/June. This is as far as I will project. All will depend on the way the US and Euopean economies continue to perform/grow in the coming 3 months. The Chinese TiO2 market/price structure is an entirely different matter. Will revisit the subject in May/June. It looks like the US economy's growth will range from 1% (worst scenario) to 3% (best scenario) for 2013. It this proves to be correct, US TiO2 consumption will improve moderately and with it, TiO2 prices. I expect TiO2 prices to go up by 5% by May/June; ending the long price decline which started in June 2012 and brought TiO2 prices down by an average of 30%.

Europe is a mixed bag with Germany doing OK and the rest limping along. The latest economic indicators show that there is some hope the recession will end by mid-year. I therefore expect European TiO2 consumption to stabilize by mid-year and prices to stabilize at that time. Re TiO2 Rutiles produced in Europe; they have rarely been shipped to the US because far too expensive for the US market - especially today with the current level of the Euro. For Europeans, due to the current level of the Euro, TiO2 imports - especially from China - have become attractive. Finally, US TiO2s have occasionally been sold in Europe when the differential between US and European TiO2 prices justified it. It is not the case today.

FYI, world production of Leucoxene is very small (same level as natural rutile). Tronox (Exxaro Sands) produces 26,000 MT/year (out of 1.2 million MT of Titanium feedstock or 2%!). Price of the 85 grade is similar to the synthetic rutile which is used for the same purpose (chloride TiO2 production)."

Sorry if this doesn't direct answer your questions but there is some great resources on the net if you go digging. Also i suggest emailing the company and put your concerns directly to them. GLTA