# MDL - Mineral Deposits



## stink (22 June 2006)

Hi All,

Just a stock i have had my eye on, would like to hear your opinions on its performance and trading opportunity.

Purely for learning purposes as i am only new to trading.

Regards Stink


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## mrWoodo (14 December 2006)

Suprised this thread is dormant - Just had a look, ASX300 company who are experienced in heavy minerals sand dredging. After their Oz projects came to a close, they've focused on Senegal, West Africa for Gold and Zircon. (Seems like a low budget operation, I believe the sand is simply put back in place so there's little long term impact to the coastlines ?)

(Their projects are due to commence end of 07)

Anyway I'm in @ $1.525, hoping that the current price is a dip.

Woodo



Grabbed the following re. Zircon prices from here 

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Zircon prices continue to rise as demand exceeds supply

There is a very real risk that demand for zircon could soon be substantially greater than global supply. It has been forecast that the shortfall could be more than 100,000t in 2005 and some industry observers believe that, even if all the planned mineral sands projects come into production over the next ten years, demand will still outstrip supply. If zircon production does not increase to meet the expanding demand, prices will continue to rise to a point where consumers in one or more industries may switch to using alternative materials. Such a shift has taken place before. In the mid-1980s raw material shortages and spiralling prices led manufacturers of refractories in Japan to permanently substitute alumina spinel for zircon in many applications. The result was a sharp decline in demand for zircon in refractories that has never been reversed. The last three years have shown a high degree of concentration of corporate control of zircon production. In 2001 the twelve largest producers had a combined output of just over 1Mt, about 80% of the world total. Four corporate groups now effectively control about three quarters of the world's zircon supply: Iluka Resources, Rio Tinto, BHP-Billiton and Anglo American. While more mineral sands projects at various stages of planning and development around the world could do much to restore the supply-demand balance, with a combined potential zircon output of over 500,000tpy, in practice the outlook is less encouraging. Some of the projects, such as Iluka's developments in Australia, are aimed principally at compensating for falling output and do not necessarily represent additional supply.
What the report gives you

    * Independent, in-depth research and analysis
    * Essential market intelligence for successful business planning
    * Detailed survey of production in 51 countries
    * Up-to-date profiles of over 70 producing and processing companies and their activities, including Iluka Resources, Namakwa Sands, Richards Bay Minerals, Kerala Minerals and Metals and BHP-Billiton
    * Forecasts for end-use consumption and world supply and demand

Report highlights

The shortage of zircon is not a reflection of the mineral's availability - mineable reserves are sufficient to sustain current levels of output for over 30 years - but is largely a result of the economics of mineral sands production. Zircon is extracted as a co-product or by-product of titanium minerals, the market for which is over-supplied. Global demand for TiO2 feedstock thus has a major effect on both the production of zircon and the viability of new mining projects.

World consumption of zircon was about 1Mt in 2003 (excluding the FSU). With a share of 35%, Europe has long been the principle consuming region, largely a reflection of the sizeable Spanish, Italian and Turkish ceramics industries. That position will be challenged in the future by the strong growth in demand taking place in China, much of it from the rapidly expanding ceramics industry, with China's output of tiles growing by over 20% in 2002.

The last three decades have seen a major shift in the global distribution of zircon production. In the 1970s Australia accounted for at least 50% of total output and the USA some 20-30%. South Africa was then only a very minor producer. Australia's dominance of the industry was reduced in the late 1970s, with the development of the Richards Bay beach sands operation making South Africa the second largest zircon producer worldwide. Today, South Africa and Australia produce approximately the same amount of zircon and account for 80% of total supply.

Prices for zircon sand have been rising since 1999. Since the beginning of 2003 ceramic grade zircon sand prices have increased by nearly 25% from US$370-400/t to US$450-500t in June 2003 reflecting tight supply. Over the same period the price for opacifier-grade milled zircon has increased from US$600-620/t to US$680-720/t, a rather lower rate of increase, which reflects strong competition between zircon milling companies in the west and their need to remain competitive in an industry facing a strong challenge from China.


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## mrWoodo (17 January 2007)

Appears I jumped in too early - 1 month later and I'm back to where I started.

Good news at least, it has bounced off the low trend line, buyers picked up on this, hence the slight increase in the past weeks volume. Sorry if this is so obvious, but for me this is 'magic' - My first line on a chart


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## questionall_42 (21 June 2007)

Intersuisse have a spec buy rec on MDL.

Source: http://www.intersuisse.com.au/files/Resources/Mineral%20Deposits.pdf


Poised to begin development of major gold and mineral sands projects in Senegal, West Africa
Mineral Deposits Ltd (MDL) is on the verge of beginning to develop two major projects – one for gold and the other for zircon - in the West African country of Senegal that upon completion will transform the company and propel it into a significant mid capitalization resource counter
The company recently received the Presidential decree for development of the Sobodala gold project that is expected to have a capital cost of about $US145 million and to produce an average of about 150,000 ounces per annum after early years with output of around 200,000 ounces from
treatment of higher grades in an open pit mine that treats about 2 million tonnes of ore over a mine life of about 10 years with first output expected in late 2008
Recent high grade gold intercepts at Sobodala give strong indications for potential underground
mining extensions below the open pit
The Grande Cote zircon project is based on a number of zircon-rich deposits along a 50 km stretch of coastline that should be readily mined by standard dredge operations similar to those employed by MDL during its Australian operations that is planned to produce around 85,000 tonnes per annum of zircon from early in 2009 after capital expenditure of about $US 140 million excluding working capital
Zircon demand remains very strong so that with ongoing supply constraints, the zircon price continues to be very firm and is expected to remain so for the next few years
While both the Sobodala and Grande Cote projects have construction phases that traditionally provide little investor interest, ongoing exploration associated with the projects should gain the market’s attention if it continues to successfully identify additional mineralisation
Favourable fiscal arrangements in Senegal for both MDL’s projects include at least a seven year tax-free period and no import or export taxes or withholding tax under MDL’s structure


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## The Captain (16 July 2007)

Interesting stock. Have been watching it for a month now. I bought in at $1.28 on the bollinger band figuring there was nice resistance around that price and the stock would bounce up, which it has. Now what to do? Looks like the stock may break out but needs heavy volume. May be an interesting week. Some resistance to break through at $1.50 then again at about $1.65. MACD looks Ok, just starting to break over the 200 M.A. 
I'd love to hear what anyone else has to say on this stock.


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## arj (5 December 2007)

Trading Halt today. Possibly related to listing on the Toronto exchange?

Does anyone have any thoughts on this stock?


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## So_Cynical (24 November 2008)

This threads been quiet for a while...Finance and development update out today 

http://www.mineraldeposits.com.au/user/files//Announcements/2008/080107MDL.pdf

_The entire gold put option position of 227,000 ounces has been closed and a buy 
back of 280,500 ounces of flat forward sales has been completed to realise proceeds 
of US$60 million._

_• Hedge book substantially reduced by close outs – US$60 million proceeds realised
• Outstanding hedge book – 179,500 ounces at US$861/oz
• Finance Update – MDL remains well financed
• Sabodala Project Development Update – Practical completion early January 2009_

MDL have 3.5 million ounces at there Sabodala Project in Senegal, West Africa, first 
pour expected very early 09.


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## So_Cynical (29 January 2009)

MDL announcement out today - SABODALA GOLD PLANT COMMENCES CRUSHING

The construction of the new two million tonne per annum carbon-in-leach (CIL) treatment 
plant at Sabodala in Senegal, west Africa is complete.

MDL is pleased to announce that the primary crushing circuit commenced crushing of ore on 
Tuesday, 27 January 2009 as the first stage of production ramp-up. At present, there is in 
excess of 600,000 tonnes of predominantly oxide ore containing over 45,000 ounces of gold 
on the run-of-mine (ROM) pad directly adjacent to the main crushing circuit.

Commissioning of plant equipment is well advanced and on schedule for the first gold pour
planned for March 2009.

Read on...

http://www.mineraldeposits.com.au/user/files//Announcements/2009/090009MDL.pdf

_

Sabodala plant by nite.


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## Sean K (9 February 2009)

So_Cynical said:


> MDL announcement out today - SABODALA GOLD PLANT COMMENCES CRUSHING
> 
> The construction of the new two million tonne per annum carbon-in-leach (CIL) treatment plant at Sabodala in Senegal, west Africa is complete.



I read in one of the newspapers (sorry can't find the ref now) that Redback mIning boss said he liked MDL 'a lot' and they have just raised a ton of cash with speculation they were on the hunt for an acquisiton. Same article mentioned PRU as a possible target also. Obviously just speculation but sometimes where there's smoke....

Haven't looked at MDL before. Looks interesting, and yet another that was way oversold, and now more than doubled from the low, and another opportunity missed. 

Bit of resistance at 70-75..ish


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## So_Cynical (9 February 2009)

kennas said:


> I read in one of the newspapers (sorry can't find the ref now) that Redback mIning boss said he liked MDL 'a lot' and they have just raised a ton of cash with speculation they were on the hunt for an acquisiton.




If Memory serves...Redback brought in a while back, maybe 6 months ago,
i think they have like 5% or so, Redback have a few near by deposits/operations.

Pretty sure it was Redback...there Canadian right?


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## So_Cynical (21 March 2009)

MDL had its first pour late this week.

MDL is pleased to announce that during the week gold production commenced at the 
Sabodala plant with the pouring of the first gold dore bars..The Sabodala plant has 
commissioned smoothly with no significant issues and is already operating above 
nameplate capacity etc.

Read on http://www.mineraldeposits.com.au/user/files//Announcements/2009/090027MDL.pdf


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## Pinnacle (4 June 2009)

Hi all,
I have been a holder of this stock & accumalating along the way since 2002. I think it still has huge potential when you do the math. I think holders will be in for a great ride.


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## So_Cynical (4 June 2009)

Pinnacle said:


> Hi all,
> I have been a holder of this stock & accumulating along the way since 2002. I think it still has huge potential when you do the math. I think holders will be in for a great ride.




Agreed...the big potential to come is the low cost sand mining of zircon and ilmenite, if memory serves its like the second biggest undeveloped deposit in the world, with a 25+ year mine life, right on Europe and north east Americas door step.

Read all about it http://www.mineraldeposits.com.au/user/media/MDL GC Brochure - Feb 09 [A4 small].pdf


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## Ajax (8 October 2009)

At Rodman and Renshaw investment conference in New York (11 Sept 2009) MD of Mineral Deposits Limited said a 40 year life for Grande Cote Mineral Sands deposit. Can listen by registering for webcast. You need to google Rodman and Renshaw conferences. 

With respect to MDL's gold interests, the company is now able to explore other areas (banks were restricting this prior to Sabodala production plant running). Sabodala now producing approximately 240,000 ounces gold p.a. 

MD indicated there is a lot of corporate interest in Mineral Deposits Limited.


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## Ajax (14 October 2009)

Mineral Deposits Limited (stock code MDM on Toronto Stock Exchange) last trading at 91 Canadian dollars. Over 1 million volume (not just small volume and aberrant pricing)

MINERAL DEPOSITS LTD(THE CO)(Toronto: MDM.TO)
Last Trade: 0.91 
Trade Time: 2:30PM ET 
Change: 0.03 (3.41%) 
Prev Close: 0.88 
Open: 0.88 
Bid: 0.91 
Ask: 0.92 


Using oanda.com

Tuesday, October 13, 2009


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## Ajax (14 October 2009)

Following on from previous post where MDL is trading at 91 Canadian $ on TSX

Tuesday, October 13, 2009

91 Canadian Dollar = 96.89401 Australian Dollar


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## skc (14 October 2009)

Ajax said:


> Following on from previous post where MDL is trading at 91 Canadian $ on TSX
> 
> Tuesday, October 13, 2009
> 
> 91 Canadian Dollar = 96.89401 Australian Dollar




So is the TSX listing over priced or the ASX listing under priced? Can you arbitrage that without taking any currency risk?


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## prawn_86 (14 October 2009)

skc said:


> So is the TSX listing over priced or the ASX listing under priced? Can you arbitrage that without taking any currency risk?




Hmmm, COuld you do a currency swap locking in the FX rate, short the TSX, long the ASX and hope the profits cover the costs of the swap?

Actually i dont think that would work, because the underlying security is exposed. Even if you have the swap, and the spot changes, that will effect the share values...


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## skyQuake (14 October 2009)

prawn_86 said:


> Hmmm, COuld you do a currency swap locking in the FX rate, short the TSX, long the ASX and hope the profits cover the costs of the swap?
> 
> Actually i dont think that would work, because the underlying security is exposed. Even if you have the swap, and the spot changes, that will effect the share values...




Agree, the main problem is that you can't lock in both prices simultaneously. 
Even then, the spread can widen out and hurt you more; ADR conversion is an option but usually time consuming and expensive.


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## Ajax (15 October 2009)

Its on fire this morning. Huge bids around $1.00 (one for over 500,000 shares). Traded as high as $1.04 so far. Up over 10% on yesterday's close.
Almost 2m volume done so far.


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## Ajax (25 February 2010)

I am concerned about the following item in the condensed consolidated statement of comprehensive income for the half-year ended 31 December 2009 

"Gold hedge unrealised losses (36,909)"

i.e. $36.909 million unrealised losses in the 6 month period.

The financial report for the half year to 31 December 2009 contains the following comments

"Going concern
The group recorded a net loss of $17.441 million after income tax for the six month period ended 31 December 2009 and net cash provided by operating activities of $31.469 million, capital commitments of $1.514 million and cash reserves of $25.358 million at 31 December 2009. The
group had a net current asset deficiency of $2.302 million at 31 December 2009. In addition, certain undertakings in relations to the project finance facility remaining outstanding at the date of this report and hereby provide the bankers the right to demand repayment of the project finance facility before the scheduled repayment date of 30 June 2010.
To continue as a going concern, the company and the consolidated entity require:
- generation of sufficient funds from operating activities which include gold production as forecast in current Life of Mine Plan; and
- the continued support of its bankers, creditors and major shareholders."


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## So_Cynical (25 February 2010)

Ajax said:


> I am concerned about the following item in the condensed consolidated statement of comprehensive income for the half-year ended 31 December 2009
> 
> "Gold hedge unrealised losses (36,909)"
> 
> ...




LOL thats the legal (but true) crap they have to put in there...the very next page reads.

The directors believe the going concern basis of preparation to be appropriate given the following reasons:

sufficient net cash inflows will be generated through both gold sales into the company’s current hedge commitments and any excess gold above its hedge position being sold at spot resulting in net cash inflows which allow the company to meet operating costs and retire the Macquarie Bank Limited (“MBL”) project finance facility.


 the directors are confident that they can fulfil the scheduled repayment obligations under the terms of the MBL project finance facility intended to be repaid by 30 June 2010.


 it is unlikely that MBL will require full repayment anytime before 30 June 2010; and


 alternatively the directors can raise capital through the issue of new shares on the Australian Securities Exchange or Toronto Stock

Then back on page 1 under FINANCIAL POSITION


the Project Finance Facility at 31 December was *$21 million* (30 June 2009 – $38 million) with a repayment schedule now in place to fully pay out the balance by 30 June 2010; and


As at 31 December 2009, the outstanding hedge position was 295.500 ounces of flat forward sales at $846 per ounce which, on mark-to-market (based on a gold price of $1,105 per ounce), equated to a negative position of *$79.7 million (unrealised).*


Everything's fine and dandy....Total Debt and Hedge position of about 100 mill, and lets keep in mind there sitting on 25 mill in cash...full half year report below.

http://www.mineraldeposits.com.au/user/files/Investor Centre/Financial Reports/2009/090141MDL.pdf


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## Ajax (26 February 2010)

Thanks for that post So Cynical,

so if they keep delivering gold then the hedge position ends in June or July 2010?

It's a real problem where financiers insist on companies hedging part of future production as a condition of providing finance.  

Why don't companies buy put options instead?


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## So_Cynical (23 March 2010)

CBA - Commonwealth bank of Australia, notice of initial substantial holder released to the ASX today. 

http://www.asx.com.au/asxpdf/20100323/pdf/31pf0wp4w41tf8.pdf

Just has to be good for the SP when Australia's biggest Bank puts there money into a company...especially when that company is a goldie operating in West Africa.


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## So_Cynical (13 April 2010)

After months of speculation the rumours have come true...MDL will split off the Mineral sands side of the business by spinning out the Grande CÃ´te Project and financing it external to MDL through a separate IPO.

Of course its to be expected that share holders will get some sort of preference and or discount exposure to the IPO..the Grande CÃ´te Project is suppose to be the biggest undeveloped mineral sands deposit in the world and with a mine life of 25 years, low costs and easy access to north Atlantic markets...would seem to be a good long term hold.

http://www.mineraldeposits.com.au/user/files//Announcements/2010/100025MDL.pdf

Meanwhile MDL trading near $1 a share again


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## Wysiwyg (2 May 2010)

So_Cynical said:


> Of course its to be expected that share holders will get some sort of preference and or discount exposure to the IPO..
> 
> Meanwhile MDL trading near $1 a share again



Should be the scenario. 

AU production @ 170k / year on track with proposed expansion from  "nominal 2 Mtpa to 3.5 Mtpa" throughput. Along with the mineral sands project aiming for a 2013 start up following the DFS completion this month.

Stock trending up and should remain so barring a significant decline with the gold price or markets.


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## So_Cynical (8 September 2010)

Closed out my MDL adventure today at the open and days high of $1.10  im down to just 2 Gold stocks now as i continue my portfolio re-focusing exercise...i call it an adventure because as the chart shows that's exactly what it was. :

I brought in just a couple of months after the market had topped (without a plan or a clue) and rode it all the way down, at least at the bottom i was smart enough to buy more, and lucky in that when the opportunity came to participate in a SSP at a healthy discount i had enough funds and belief to buy big.

Sold the most expensive shares (about 35% of the total) about a month later for a 3 or 4% loss and then waited until today to take my 80%+ profit and 50% CGT discount :bite: 952 days in the trade.  hows that for patience! and sticking to a sell target....lol

Good luck to the holders going forward and lets hope they get a good deal when the gold IPO goes thru...certainly some upside potential, ill probably regret this now as come to think of it MDL management was very generous when they did that first SSP but then no so when the second one came along.
~


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## So_Cynical (11 July 2013)

Strange how some threads are very quiet for long lenghts of time.

Anyway MDL has moved along and is now in partnership with French Mining and Metals giant ERAMET, they will have their West African (Grande CÃ´te) sand mining project in operation next year, 75% completed now, they have also acquired a Ilmenite Upgrading Facility (plant) in Norway that produces upgraded ilmenite (titanium slag) and high purity pig iron.

http://www.eramet.com/en


 45 Mill in cash
 No Debt
 Market Cap of 145 Mill

Downside there is some potential for a cap raising to complete the Grande CÃ´te project and i suppose that's a factor in the SP decline, could be an opportunity to, anyway have placed my first buy order in like 5 months...lots to like about MDL at the current price.


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## So_Cynical (14 October 2014)

I took a trade 12 days ago based on the double bottom and the fundamentals, Grande CÃ´te project up and running even with some small output issues (early days) and the first shipments of concentrated ore...the business is a goer, with substantial vertical integration cost benefits.

Closed the trade today for a small profit but will be happy to jump in again on any SP weakness.
~


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## peter2 (10 May 2017)

Price has been in a strong trend down for many years, but finally there's some evidence of a change to up. 

The weekly chart shows a nice ascending triangle pattern with higher lows. Both volume indicators (OBV and TMF) are looking up. It's daily traded volume is low, so attention to money management is required.


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## System (30 August 2018)

On August 28th, 2018, Mineral Deposits Limited (MDL) was removed from the ASX's official list following compulsory acquisition of the Company's securities by ERAMET SA.


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