MDL - Mineral Deposits
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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
--------------------------------------------------------
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.
(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
--------------------------------------------------------
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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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
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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Intersuisse have a spec buy rec on MDL.
Source: http://www.intersuisse.com.au/files/Resources/Mineral%20Deposits.pdf
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
The Captain
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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.
I'd love to hear what anyone else has to say on this stock.
So_Cynical
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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.
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.
So_Cynical
The Contrarian Averager
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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.
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
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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
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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?
So_Cynical
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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
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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So_Cynical
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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
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.
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.
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
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
skc
Goldmember
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So is the TSX listing over priced or the ASX listing under priced? Can you arbitrage that without taking any currency risk?
prawn_86
Mod: Call me Dendrobranchiata
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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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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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