Diversified resource company, MLX Metals Limited (ASX: MLX) has provided a response to an ASX Aware Query with regards to an announcement entitled “Update of Operations: Underground Mine at Nifty” which was lodged on ASX on 12 March 2019.
In the announcement, the company had informed that a temporary loss of power at its Nifty Copper Operations (Nifty), nevertheless, the production for the March 2019 quarter will be impacted. The company has informed that it is expecting the production for the March 2019 quarter to be in the range of 4,000 tonnes to 4,200 tonnes of copper in concentrate.
In its Aware Query letter, ASX has asked about the timing of when the power was lost at the Nifty Copper Operations. In response, the company has informed that around 4.30 PM AWST on 7 March 2019, the power was lost.
ASX has also asked about “When did MLX become aware of the loss of power?”. In reply to this question, the company has informed that approximately 4.30 PM AWST on 7 March 2019, the company became aware of this.
Further, the company also informed that it does not consider the loss of power to be information that could have a material impact on the price of securities. According to the company, the level of materiality depends upon the total amount of time that the mine is offline due to the loss of power. In this instance, the duration of the loss of power was not material.
As a result of the loss of power, it is estimated that around 200 tonnes of copper were lost. The company became aware of the impact of the loss of power on the production at around 2.00pm AWST on 11 March 2019 when power was reconnected.
ASX has also asked if MLX consider the Revised Production Estimate which was provided in the announcement, to be information that could have a material impact on the price or value of its securities. MLX has answered by stating that it does not consider that the information will have a material effect as the expected production range of between 4,000 to 4,200 tonnes of copper in concentrate was not a ‘revised’ production estimate. Before this, the company had not provided any production estimate for the March 2019 quarter due to for various reasons, including the unreliability and uncertainty associated with legacy infrastructure and mine issues at the Nifty mine and the ongoing work being undertaken by MLX on an initial Life of Mine (LOM) plan.
Meanwhile, in the last six months, the share price of the company decreased by 51.38% as on 15 March 2019. MLX’s shares are trading at $0.250 (-5.66% intraday) with a market capitalization of circa $182.6 million as on 18 March 2019 (AEST 04:00 PM). It has a 52 weeks high of $0.980 and 52 weeks low of $0.250 with an average volume of ~2,729,537.
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