THERE is a bit of a buzz surrounding MZI Resources. And it has nothing to do with its recent name change from Matilda Zircon.
Last quoted at 3.3c a share, MZI has a 9c-a-share price target on it set by Hartleys on the strength of its existing Tiwi Islands mineral sands business, and the project that the punters reckon is a game changer -- the Keysbrook project, 70km south of Perth.
A feasibility study into a $50m to $60m development of Keysbrook is due within three weeks. Fat margins on its planned production of leucoxene (a high titanium feedstock used in pigments) and zircon (used in ceramics and tiles) is expected.
So much so that a capital payback of less than 12 months is on the cards at current prices for the mineral sands.
For that, it is a case of thank you very much for industry leader Iluka, which has done its bit for price maintenance by turning down supply -- or turning it up -- depending on demand.
