MURCHISON METALS LTD
Strong Financial Position
MMX - Progress with Major Projects - Mr Trevor Matthews, MD
Mon, 13 Oct 2008 10:00AM
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Mr Trevor Matthews
Mon, 13 Oct 2008
10:00AM Australia/NSW
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MURCHISON METALS LTD (MMX)
ASX code: MMX
Website: http://www.mml.net.au/
Industry: Materials
Principal Activities:
Exploration and Development of Bulk Commodity Projects and Infrastructure
Address:
50 Kings Park Road, Level 1
WEST PERTH
WA
Phone: (08) 9492 2600
Fax: (08) 9492 2650
Executives & Directors
Mr Paul J Kopejtka , Executive Chairman
Mr Trevor Matthews , Managing Director
Mr James McClements , Non Exec. Director
Mr Sun Moon Woo , Non Exec. Director
Mr John Westdorp , CFO
Mr Chris Foley , Company Secretary
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Company ASX Announcements
Company ASX announcements can be viewed on the ASX website.
Announcements from the preceding six months are shown below.
Please refer to the relevant stock exchange if any of the above information is incorrect
MURCHISON METALS LTD (MMX) Events
Australia/NSW
MURCHISON METALS LTD (MMX)
| Change of Director`s Interest Notice | Wed, 3 Dec 2008 |
| Chameleon Litgation Update | Fri, 28 Nov 2008 |
| CHM: Litigation Update | Thu, 27 Nov 2008 |
| Audio Broadcast | Mon, 24 Nov 2008 |
| AGM Chairman`s Address and Presentations | Fri, 21 Nov 2008 |
| Results of Annual General Meeting of Shareholders | Fri, 21 Nov 2008 |
| POSCO lifts shareholding in Murchison | Tue, 18 Nov 2008 |
| Change in substantial holding | Mon, 17 Nov 2008 |
| Change of Director`s Interest Notice | Fri, 31 Oct 2008 |
| Response to ASX Price Query | Fri, 31 Oct 2008 |
Please note: This company appears on this website as a result of its listing on the Australian Securities Exchange. Boardroom Radio does not claim any association with any company listed on this site.
INTERVIEW WITH TREVOR MATTHEWS, MANAGING DIRECTOR OF MURCHISON METALS LIMITED (MMX)
“Strong Financial Position”
http://www.brr.com.au/event/52302
MONDAY, OCTOBER 13, 2008, 10:00 AM.
BRR Today, you’re listening to Boardroom Radio and we’ve got Murchison Metals on the line. We’ve got Trevor Matthews, Managing Director. How are you
10 doing there, Trevor?
MMX I’m fine. Thanks, Matt.
BRR So, we’re in the midst of serious market turmoil. Resources and stocks have dropped across the board. MMX Inmet, in particular, are dropping significantly
15 in price over the last few weeks, in particular in the last couple of days. Are there any problems with the Murchison Projects?
MMX No, absolutely not, Matt. I mean, fundamentally we’re doing the same things that we were doing in terms of progressing our projects and also our Stage 1 operating project at Jack Hills which is in our joint venture company
20 Crosslands, which is a joint venture with Mitsubishi. So fundamentally, all those projects are moving forward, and in recent times, we’ve had success in relation to the port development decision. We’re making good progress with discussions with the government on the rail route from connecting the mines to the port, and our expansion studies for the Jack Hills Mine Stage 2 project
25 are advancing well as well. So, in our net context, things are progressing very well.
BRR You’ve recently applied for the approval to drill at the Rocklea Iron Ore Project. How’s that going?
30 MMX That’s well advanced. In fact, we should commence drilling there in the next week or so. In addition to that, once we’ve been able turn around the assay results from those drilling programs, we should be able to make some announcements in relation to that drilling program in about December of this year or certainly before the end of the year. So, that’s been progressing really
35 well. We haven’t had any problems getting equipment or people, and I suppose, one of the benefits coming out of the current sort of turmoil is that it is making people and equipment certainly more available. We are in a position with our pretty strong cash balance of roughly $165 million, which equates to about 40 cents a share by the way, we’re in a position to be able
40 to fund these programs and be able to progress all of… not only our Rocklea project but obviously the other studies and projects that I mentioned earlier on.
BRR Rocklea is looking promising, indeed. So, apart from Rocklea, how’s
45 Crosslands going and is there potential for a higher output? Conversely, if there was higher output, is MMX well placed to increase shipping potential?
MMX Crosslands is performing well. It’s been able to ramp up its production to about the 1.5 to 1.6 million tonne per annum level. It’s currently got on orders, some further trucking equipment to increase that production to about 1.8 million tonnes annualized and that should be achieved sometime in the first quarter of next year. It’s performing well. The ore quality has been good right through from the first shipment and we’re very happy, and I’m sure Mitsubishi are happy as well, about the performance of Crosslands Stage 1 project.
5
So, in relation to our other joint venture projects that we have with Mitsubishi which is the Oakajee Port and Rail joint venture, that project has been advancing particularly well. As I mentioned earlier on, we’ve got the port decision on the rail route collection process well advanced with government.
10 We’re also in the process of negotiating or completing the negotiations with the development agreement with the State which we expect to be concluded in the near future. Really, the engineering and development timeframe for that project means that we should be completing our bankable feasibility studies by the end of 2009 which I’m sure not only Crosslands as a user of that
15 infrastructure will be delighted with but also the other iron ore miners in the mid west region who will also be customers for that infrastructure.
BRR There’s been recent talk of Chinese customers renegotiating their demands. Will this be a problem for Murchison?
20 MMX It’s not a problem that we’ve noticed at this stage. We’ve had a couple of smaller mills who we’ve had some actual credit problems, not so much a drop in demand so they haven’t been able to provide the required letters of credit to us so we’ve had to move those shipments to other customers, but all of our shipments for the December quarter are planned shipments, that is. There’s
25 been no request for changes in those areas, and for those short to mid term, we’re pretty confident about our ability to maintain those shipping schedules so we’re not noticing any significant decrease or push back from Chinese customers in relation to the planned shipments over the short to mid terms, so that’s pretty positive.
30
I think the other thing that’s worth mentioning, which there has been a fair bit of discussion about, is iron ore prices for next year and while the spot prices are certainly reduced likely and the outlook for benchmark pricing next year is perhaps that they won’t be an increase and there might be some sort of small
35 decrease or roll over, I think one of the things that people need to bear in mind is that there’s been a quite significant reduction in the US dollar-A dollar exchange rates. So while we maybe don’t have quite the same increase in iron ore sales price being achieved, the roughly 30% reduction in the A dollar comparable to the US dollar means that we’ll more than offset any less than
40 rollover outcomes on iron ore pricing. So as far as revenues go and profitability for certainly producers in the coming period of time, Australian producers, I don’t think there should be any real significant impact on the bottom line.
45 BRR So, the question on investors’ lips out there will no doubt revolve around the resignation of the Executive Director, Robert Vagnoni, lately. So will that have a potential bearing at all on Murchison Metals?
MMX No. Well, I’m saying that, I mean, Robert has been a significant contributor and a founding director of the company, but Robert’s been considering alternative career options for a period of time now and his main focus was on the Stage 1 development and Rob’s involvement in the Stage 2 program and some of the more recent activities we have been involved has been somewhat limited. So Rob’s taken the opportunity to move on and certainly
5 the Board thanks him for all of his significant contribution to date. But the current management and Board are certainly well experienced and able to progress not only our mid west developments but also the Rocklea project and the other potential opportunities that may come to the Company.
10 BRR Well, it’s glad to see that apart from the marketing conditions Murchison Metals is still looking promising indeed. Just to reiterate, we’ve got Trevor Matthews, Managing Director of Murchison Metals on the line. Thank you once again for your time, Trevor.
MMX Thank you, Matt.
15
BRR If any interested listeners have any questions for Trevor or for ourselves at BRR, just email in to brr@brr.com.au and we’ll forward them on to Trevor.
INTERVIEW CONCLUDED
Contact brr@brr.com.au for more information
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