Another announcement that continues to tick boxes, showing that the joint venture partners are working well together, and that things are continuing to progress at a fast pace. My big take on the announcement is below.
"Corridor North and Marao projects are planned to contribute to an expanded mine production schedule when annual Heavy Mineral Concentrate (HMC) production exceeds 110,000 tonnes at the end of Stage 1 (Corridor North) and 440,000 tonnes at the end of Stage 3 (Marao)"
What I particularly like about this announcement, is Marao is planned to contribute to an expansion at the end of stage 3. It shows me that once the JV has production up and running they will access finance to expand well beyond 440,000 tonnes a year. Probably around MRG's scoping study amount of 660,000 tonnes a year. I believe they will then be looking to sell the project. Probably for US $400 million plus is my guess.
Looks to me like Sinowin are trying to fast track this as quick as possible to get a return on their money. The next 18 months should be constant growth and news flow. I strongly believe patience will be rewarded.
$400 million US, is $80 million for MRG, or $120 million AUD.
All my own numbers and research, DYOR.
GLTAH
MRQ Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
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