Just found this article on Miningnews.net Cheers John.
Independence into Matrix
Michael Quinn
Friday, November 26, 2004 INDEPENDENCE Group's ambition to become a multi-commodity company has taken a significant step forward, with the nickel miner spending $11.85 million on a 19.96% stake in copper hopeful Matrix Metals.
Independence managing director Chris Bonwick said the outlook for copper was good, and described Matrix as being a well-managed company with good assets. The interest was bought on market, and he refused to be drawn on whether Independence would seek board representation.
Matrix is currently completing a feasibility study on the development of a $30 million copper project called White Range near Cloncurry in Queensland.
White Range is being considered as a 15,000 tonne per annum SX-EW operation, with first production possible by the third quarter of 2005. Matrix intends transferring an idle plant at Mt Cuthbert that it owns to White Range.
White Range has around 12 million tonnes grading 1% copper, most of which is contained in the Greenmount deposit.
Elsewhere Matrix expects to announce a resource for its nearby Mt Earl prospect by the end of 2004. Mt Earl is one of a number of targets near Matrix's Mt Watson project, where a feasibility study is likely to begin in the coming months.
As with its sister operation, Mt Watson is being planned as a 15,000tpa copper cathode operation, with capex costs possibly around 25% more than White Range if a new plant is used. Mt Watson contains 6.5Mt at 1%, with the resource rising to around 10Mt if a 0.3% cut-off is used rather than the current cut-off of 0.5%.
Meantime Independence recently became a dividend payer on the back of ongoing strong performances at its Long nickel project near Kambalda.
In the September quarter the company reported a $6.4 million consolidated pre-tax profit, adding to the $17.7 million cash it already held.
Last year Independence made a net profit after tax of $17.3 million, and was aiming to produce around 8900t of contained nickel in the current year.
Shares in Independence were at $1.37 prior to a trading halt, whilst Matrix's stock was up 1.9c to 11.5c immediately before it too called a halt.
Disclosure: The reporter holds interests in Independence and Matrix
MRX Price at posting:
0.0¢ Sentiment: None Disclosure: Held
