There is no doubt that MZI Resources has scored a major coup with the US$64 million in project debt funding from RMB Australia Holdings as it highlights the confidence that FirstRand Group – RMB’s parent – has in the Keysbrook Mineral Sands Project.
This is especially true given today’s tougher capital markets where a project has to really stand out in order to secure the required financing.
Now fully funded – when combined with RCF’s US$41.5 million funding package, construction at Keysbrook will commence in late June 2014 with first production scheduled for mid-2015.
That Keysbrook will generate strong returns, even at the current low point in the mineral sands economic cycle, is a testament to the strong project economic metrics.
With a likely recovery in the feedstock demand cycle underway by the time Keysbrook comes into production, MZI is set to reap higher margins from its premium product suite.
Proactive Investors maintains its valuation and share price target of $0.042 to $0.055 for MZI within the next 6-9 months.
MZI Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
