Unfortunately the history of this company is not consistent. Production fluctuates so much quarter to quarter - the same with revenue too. Like in some months they might produce more and yet the sales don’t reflect that. The fact that this company has had the mine online for two years and is hardly earning is quite scary. Lots of people have been saying that the rcf has got faith in the company but honestly they’re making so much in interest I understand why and the risks reflect that. And those that say that we should get it refinanced- I don’t know whether it’s possible considering how unprofitable this enterprise is. What this company is gravely lacking in as well is guidance. I know that they say that they want to process 5+mtpa but it doesn’t mean much. Spell everything out to us. Eg what the asic costs are. What your sales price per ton is . When will you see the upgrade for processing better leucoxene. At what capital cost. Also the fact that the buyer doesn’t want to pay us for the product immediately also means that next quarter’s 4c is going to be bad. Looks like we will have to wait another 6 months at least. As for the possibility of an 8 bagger , I’m afraid it’s terribly calculated. Because I’m not sure whether you noticed but including debt, the enterprise value of this entire operation is 150mil++. There’s a reason why it’s so cheap and the fact that it’s losing money doesn’t also justify this value. Gravely dissapointed.
MZI Price at posting:
7.0¢ Sentiment: None Disclosure: Held
