MZI exports nearly 13,000 tonnes of L88 and L70 in December
Published 14-DEC-2016 16:33 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
MZI Resources (ASX: MZI) informed the market on Wednesday that improved production at its Keysbrook plant would ensure substantial product shipments in December with a bulk shipment of its premium L88 (circa 6240 tonnes) already completed.
Management also said that 6500 tonnes of L70, along with 1000 tonnes of zircon concentrate were planned for shipment before the end of the month.
While this is a significant development in terms of revenue generation, it should also be a reassurance that the optimisation project relating to the Keysbrook wet concentrator plant has been successful.
Retracement in the group’s share price over the last two months could be connected with investor uncertainty regarding the plant optimisation program.
Given that the company’s shares are now trading close to their six month low of 24 cents and well below the 12 month consensus price target of 56 cents, contrarian investors may take a liking to the stock.
However, potential investors should not use share price expectations, price targets, broker projections or production estimates alone as the basis for an investment. Those considering MZI should seek independent financial advice.
Optimised Keysbrook plant delivering improved recoveries and grades
Commissioning of newly installed high-performance spirals and improved screening equipment commenced on November 20. Commenting on the plant’s post optimisation performance, Managing Director, Steve Ward said, “Both Heavy Mineral Concentrate (HMC) recovery and grade have steadily increased to design levels which have now been achieved during a four-day test run at design throughput levels”.
Ward expects that continuous improvement work will continue to deliver even higher levels of performance, and on this note HMC recovery levels above nameplate capacity have already been achieved.
Improved operational performance chimes in with commodity price recovery
Management anticipates a flow on impact from the recovery of higher grades to positively impact the performance of its Picton mineral separation plant when the group starts its next major processing campaign in February 2017 under its toll treating agreement with Doral.
Ward underlined the fact that MZI’s improved operating performance comes at a time when market conditions for mineral sands products, in particular its higher value commodities such as leucoxene and zircon concentrate, are improving.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
