MZI - Matilda Zircon

[Joe Blow]

Matilda Zircon Limited (MZI), previously known as Olympia Resources Limited (OLY), is an exploration company with a focus on mineral sands and zircon development. The company is developing a suite of mineral sands projects in the Northern Territory, Queensland and Western Australia and has an expanding zircon producing operation in Indonesia.

http://www.matildazircon.com.au

 

[craigj]

mzi is just beginning to pull material out of the ground in tiwi islands and they have an off take agreement already in place
worth some research

 

[MEGALADON]

Reading the current reoport today, I cannot calculate any forecast on production and earnings ?

It seems like they are closing down the existing operations and there will be a period of twiddling thumbs ?

 

[barney]

Considering the rise of Iluka resources (ILU) and the forecast strength of "Mineral Sands", MZI looks to be in the right place at the right time.

They had a recent spike, but a factory fire put a dampener on the SP in the short term.

I could be wrong, but the last run up didn't look like your regular pump and dump, so it will be interesting how this performs over the next few months .....

I purchased a few based on the fundamental strength of zircon, and the SP sell off after the recent fire, which looked a little overdone, perhaps due to the end of financial year square up ..... we shall see what develops over the next couple of months.

 

[barney]

http://imagesignal.comsec.com.au/asxdata/20110705/pdf/01195081.pdf

Matilda Zircon Limited (ASX: MZI) is pleased to advise that it has taken another key step in its plan to start mining at the Lethbridge South mineral sands project, securing a full mining lease from the Northern Territory Department of Minerals and Energy.

Another step in the right direction .... Lets hope they can do another "Iluka" over the next few years.

 

[mr. jeff]

http://imagesignal.comsec.com.au/asxdata/20110705/pdf/01195081.pdf

Matilda Zircon Limited (ASX: MZI) is pleased to advise that it has taken another key step in its plan to start mining at the Lethbridge South mineral sands project, securing a full mining lease from the Northern Territory Department of Minerals and Energy.

Another step in the right direction .... Lets hope they can do another "Iluka" over the next few years.

I'd like to follow this up with their announced expected revenue this year;

"MATILDA REVENUE OF $40 MILLION PROJECTED OVER NEXT 6 MONTHS
LETHBRIDGE SOUTH ZIRCON / RUTILE MINE COMMISSIONED AND
FULL PRODUCTION COMMENCED"

from todays announcement.

This is exceptional considering the company currently has a market cap of $22M.
They also have debt (as far as I found) of approx. 20M.

Production commenced, board issues seem to have settled, and there has been some very significant buying from Stirling Zircon Pty Ltd board members as well as a private investor who has taken nearly 5% - my estimate.

Is anyone following this stock as it seems to offer great returns, but usually if something looks too good to be true...



Watch that 2c level, may offer a good entry. Volume is gathering.

 

[skc]

I'd like to follow this up with their announced expected revenue this year;

"MATILDA REVENUE OF $40 MILLION PROJECTED OVER NEXT 6 MONTHS
LETHBRIDGE SOUTH ZIRCON / RUTILE MINE COMMISSIONED AND
FULL PRODUCTION COMMENCED"

from todays announcement.

This is exceptional considering the company currently has a market cap of $22M.
They also have debt (as far as I found) of approx. 20M.

Production commenced, board issues seem to have settled, and there has been some very significant buying from Stirling Zircon Pty Ltd board members as well as a private investor who has taken nearly 5% - my estimate.

Is anyone following this stock as it seems to offer great returns, but usually if something looks too good to be true...

View attachment 46261

Watch that 2c level, may offer a good entry. Volume is gathering.

Interesting.
Where did you get the $20m odd debt figure from?

They don't report until mid March so I am going by their full year report from last Sept (which doesn't take into account the rights issue) and they only have ~$4m debt listed.

Have they drawn down further on a facility or something since then?

Sorry I've only spent 5 minutes on it.

 

[mr. jeff]

Interesting.
Where did you get the $20m odd debt figure from?

Etrade company info which is often wrong. Wanted to err on the side of caution considering it is debt. Cannot find any other references from the company....3.7M short term debt only at end of most recent quarter and 3.7M cash.

They don't report until mid March so I am going by their full year report from last Sept (which doesn't take into account the rights issue) and they only have ~$4m debt listed.

I agree.

Have they drawn down further on a facility or something since then?

Sorry I've only spent 5 minutes on it.

Obviously I did too. Sorry about that.

So without that debt, looking good, but perhaps there needs to be a cash raise before any serious move ?

 

[skc]

So without that debt, looking good, but perhaps there needs to be a cash raise before any serious move ?

They raised in Sept last year so I'd be surprise if they need to go to market again.

They said that the plant is fully commissioned and operating at 100% so one would think that risk is mostly taken care of. What I don't know is the kind of margin they'd get from that $40m revenue, and how much of that will go into capex developing their other site.

Plenty of sellers at 1.9/2.0 so no hurry to enter technically. I might just do some more research while waiting for the half year report which should be out in a couple of weeks.

 

[barney]

Is anyone following this stock as it seems to offer great returns, but usually if something looks too good to be true...

.

I bailed on this one when the Austrian Company (major shareholder) decided to try and oust the current Directors. I'm suspicious of their motives .... A couple of Aussie small caps they have been involved with have ceased trading .....

Speculation on my part, but it looks like they are trying to gain control of MZI at a discount ... (delist the Co and take over the resource privately??)

Cost me money in hindsight, but trouble at Board level is never good.

 

[mr. jeff]

Update on subs holder buying - interesting action and building a large stake, what do they know ?!



Watching and waiting for that break of 2c.

 

[mr. jeff]

Update on subs holder buying - interesting action and building a large stake, what do they know ?!

View attachment 46595

Watching and waiting for that break of 2c.

View attachment 46596

Finally got it.



Worth watching that 2c level for strength. Judging by the buying, production is going to plan. The project economics here are good. Have a look at their revenue projections.

 

[skc]

Finally got it.

Worth watching that 2c level for strength. Judging by the buying, production is going to plan. The project economics here are good. Have a look at their revenue projections.

Yup. Took a solid 2 months to grind between 1.7 and 1.9. Immediate target is 2.6-2.7c based on strength of previous upleg. I hold from 1.7 thanks to your post Mr Jeff back in March.

There's decent fundamental potentials on offer but I am trading this off the chart only.

 

[springhill]

For those looking for a small cap with a new income stream MZI has announced (on May 24th) their first shipment from its Lethbridge South mine on the Tiwi Islands.
http://www.asx.com.au/asxpdf/20120524/pdf/426fyc382ppl37.pdf

The sale of 6,823 tonnes of HMC was made to China’s largest mineral sands processor, Tricoastal Minerals. Tricoastal is contracted to acquire all the HMC from Lethbridge South.
Two more shipments are scheduled for July and September this year.
Sales proceeds from this shipment are estimated at US$9.6m with 90% of the funds available by early next week. The final adjusted payment will be subject to assay results after the product has been received at Haikou Port, China.
The proceeds from this and future Lethbridge South shipments will be used to:
1. repay the recently announced loan facility from Doral by the due date of 27 September 2012, and
2. contribute to the overall funding requirements of the Keysbrook mineral sands project in WA.

MZI has also received final appovals for Keysbrook.
http://www.asx.com.au/asxpdf/20120529/pdf/426jf749x0vppk.pdf

The SAT orders include the planning approval from the Western Australian Planning
Commission and the development approvals and extractive industry licences required for
project development from both the Shire of Murray and Shire of Serpentine‐Jarrahdale.
The approvals have been issued subject to compliance with previously agreed and
acceptable conditions and management plans.
The written final orders provide for an eight year period of mining and processing activities
commencing on 15 March 2012. This period excludes any rehabilitation and related
activities. The approval lapses if the development is not substantially commenced within
three years from 15 March 2012.

MZI (on March 1st) predicted revenue of $40m over the next 6 months.
http://www.asx.com.au/asxpdf/20120301/pdf/424r8zym647jpp.pdf

Mining at Lethbridge South will be completed in approximately six months with the last
shipment of HMC product scheduled for September 2012. Total Lethbridge South
production planned is 29,000 tonnes of zircon/rutile Heavy Mineral Concentrate (HMC). The
Lethbridge South sales revenue from the sales of the 29,000 tonnes of HMC is expected to
be over USD$40 million in 2012.

At the March quaterly MZI were cash poor, the $9.6m will correspond to them having (less production and other costs) approximately $3m in hand at the end of June quarter.
With 1.6b shares on issue, i would like to see a consolidation before it would fit my strategy, but that's just me.

 

[prawn_86]

wow i had these guys on a watchlist years ago as a 'near term producer'. Good to see they did finally get there.

MC of around 35m puts them on a PE under 10 but with production due to finish (??) already later this year applying a PE ratio isn't much good

 

[mr. jeff]

Yup. Took a solid 2 months to grind between 1.7 and 1.9. Immediate target is 2.6-2.7c based on strength of previous upleg. I hold from 1.7 thanks to your post Mr Jeff back in March.

There's decent fundamental potentials on offer but I am trading this off the chart only.

Any followers still around, this stock has kept moving well; even on the down days it barely flinches. Just moving nicely along. I have held for quite a while and will continue to keep an eye on it as it nears its next development stage at Keysbrook, from latest presentation in Aug:

"Feasibility Study (FS) is in the FEED phase –
MSP Engineering is lead contractor
Some infill drilling and testwork for
confirmatory mineralogy and metallurgy
Land owner negotiations nearing completion
Mining strategy – owner operator
Doral agreement includes:
– Picton dry plant upgrade design and
engineering
– Toll treatment at Picton dry plant
Export capacity allocation through Bunbury
Port and product storage at port or nearby
FS to be completed end of Q3 2012
Financing and early procurement Q4 2012
Site construction Q1 2013
Commissioning and production Q4 2013
Sales Q1 2014"

 

[mr. jeff]

"Company making project" nearing as previously mentioned....



Looking a bit rushed, but moving very nicely and for anyone that has been holding for a while, what a pleasant move, no negative over reactions to bad news days on the market, just a steady march up.

It may be in for a bit of re-testing and consolidation given this recent jump up above 3c to 3.6c, but at this stage, a good move.

 

[mr. jeff]

"Company making project" nearing as previously mentioned....


Looking a bit rushed, but moving very nicely and for anyone that has been holding for a while, what a pleasant move, no negative over reactions to bad news days on the market, just a steady march up.

It may be in for a bit of re-testing and consolidation given this recent jump up above 3c to 3.6c, but at this stage, a good move.

What a laugh - "may be in for a b it of a re-testing..." it has dropped 35% in 5 days with no news and no explanations. Company states it knows nothing and there is nothing to be announced - my thought was that the latest update doesn't spell out funding for the new project and thus



there is expected to be a CR, but that is not yet decided according to the info.

A larger holder is liquidating quickly into a down market for some reason. Ouch.

 

[barney]

A larger holder is liquidating quickly into a down market for some reason. Ouch.

Hi Jeff,
Not so long back Martin Depisch and his boyz were trying to oust the Board of MZI. I bailed at that point. Now MD and Stirling (SRE) are threatening possible legal action against MZI over the Tiwi Island tenements ....... these guys are supposed to be on the same team

If you do a little digging in relation to the Companies that SRE's management have been involved with in the past, you will find some "interesting" facts.

MZI has/had a lot of potential, but the motives of some of the major shareholders is questionable at best ..... (all just my opinion of course)
Cheers.

 

[mr. jeff]

Hi Barney
Thanks for the heads up. I did see a couple of years ago some legal action and it seemed that it had all died out. IF there is one thing I instantly leave on it is unknowns like this.
I have sold half my holding and will look for the exit on the other slice shortly.

A disappointing end to a good run up. More opportunities out there.., just got to find them!