Junior Player, Metals X Releases March Quarter Activities Report

Metals X Limited

Metals X Limited (ASX: MLX) is a base metals mining and production company based in Perth, Australia. The company’s several assets include Nifty copper sulphide mine, Renison Tin project in the west coast of Tasmania etc.

On 15th April 2019, the company announced its quarterly activities report for the quarter ended 31st March 2019.

Renison Tin operations

The company owns a 50% stake in the Bluestone Mines Tasmania joint venture through which Metals X is holding a 50% stake in this project. Metals X followed the strategy to increase the production of tin by processing higher-grade feed while maintaining a 7-year Ore Reserve. It focused on development required to implement a staged improvement in ventilation in the Area 5 and Leatherwood mining areas to support access to higher grade mining zones.

The results for the quarter were at the higher end of the guidance which reflected a 15% increase in the production. The total tin produced in the March quarter was reported to be 2,061 tonnes which was significantly higher than the previously reported number of 1,798 tonnes. The company sold 2,251 tonnes in the March quarter at a price of A$29,681 per tonne. On the cost front, the company has decreased the cost in many activities like mining, processing and administration which were stated to be A$5,418 /t Sn, A$4,873 /t Sn and A$1,112 /t Sn respectively. The major benefit for the company was that the Increased production of tin for the quarter was complimented by the rising tin price. The Renison project contributed to the EBITDA of $12.9 million compared to the previous quarter of $ 8.1 million with a net cash flow of $10.1 million compared to the $5.2 million in the previous quarter. The guidance is unchanged at 7,500 – 8,000 tonnes of tin in concentrate for 2019.

Nifty Operations

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Metals X owns 100% earnings interest in the project which is situated in the East Pilbara region of Western Australia. It is an underground copper sulphide mine with extensive infrastructure like airfield, camp, powerhouse.

During the quarter, the evaluations were also done on the site which included the historical performance of the mine, the cost base, the condition of the underground and surface infrastructure etc. The company is focusing on Nifty to increase copper in concentrate production. The company processed 284,396 tonnes of ore which produced 3,985 tonnes of copper which is down from the previous quarter production of 5,177 tonnes of copper. The total copper sold for the quarter was 4,426 tonnes with the price of A$8,722/t Cu. The cost of mining, processing and administration stood at A$4,103 /t Cu, A$2,757 /t Cu, and A$1,218 /t Cu respectively. The project contributed to negative EBITDA of $5.2 million which is still better than negative $6.2 million in the previous quarter. The primary reason was the lower production for the quarter which reduced the operating cost at the site.

On 18th March 2019, the company released a response to the ASX query regarding “Update of Operations: Underground Mine at Nifty”

On 11th February, the company updated about drilling results at Renison Tin operations.

On the technical front, the stock shot up by more than 20% on ASX, trading at $0.270 as of 15th April 2019 (AEST: 02:00 PM). In the last six months, the stock has given a negative return of 55.4%, and YTD return stands at negative 46.4%.


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