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MLX - Metals X Limited

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This following has been copied and pasted from the BTX (Bluestone tin) thread, as the two companies have now merged and re-named as "Metals X".


Metals X.

The price of Tin is predicted to stay high due to Indonesia having ordered the closure of some illegal tin smelters in that country. At the time of Renison's closure, Tin was about 8000 USD/t, now it's over 10,000.

Collingwood mine is producing now, Renison is still closed but management are looking at the economics of reopening. BTX are doing testwork using hydrocyclones to recover tin from historical tailings at Renison. The same technology could also be used to improve the recoveries of Tin assuming Renison is opened again. Capital costs are already sunk, therefore to reopen will not be too costly.

Post the merger with MTX (Metals exploration) BTX will also own the Wingellina lateritic nickel deposit in the Musgrave of WA/SA. 20km of RC drilling and 15km of RAB drilling are ongoing at Wingellina. MTX is profitable and was trading on a PE of 10 before the merger. They have royalties over some of the Mount Keith nickel tenements (BHP) bringing in 5 or 6m per year (at a much lower nickel price than now). MTX was paying dividends before the merger. Wingellina is a world-class deposit containing 1.78Mt nickel and 109Kt Co (181.5 Mt @ 0.98% Ni and 0.06% Cobalt at 0.5% Ni cutoff). Some back of the envelope calculations will show that at the current nickel price of about 32,000 USD/t there's about, well, quite a lot of value in the ground.

Lateritic nickel deposits are not all the same. Some (such as Wingellina) are amenable to an atmospheric heap-leach process as being used by European Nickel at Caldag in Turkey. This will hopefully avoid nightmares a la Minara/Anaconda nickel etc who used pressure acid leach (pressurised sulphuric acid at 225 centigrade anyone?). Of course, Wingellina is pretty remote, being situated on the WA/SA border, not far from the NT border. In addition to the nickel, some tantalising PGM hits were reported such as 4m @ 1.56g/t PGM (136-140m). Not economic in itself, but it was in the same zone as 50m @ 1.42% Ni & 0.06% Co (92-140m) and could therefore perhaps be co-mined. I emailed the company about the PGM and asked if they were going to re-analyse the samples from the earlier drilling programmes for PGM, but they replied that their focus is on Nickel for now. Presumably the current drilling will be routinely analysed for PGM though. Wingellina remains open along strike and it seems likely that there's more to be found.

The managment (Peter's Cook and Newton) is the same as Hill 50 Gold and Abelle Gold, both of which had tired assets that other companies had discarded (sorry, sold), were turned around and then taken over by majors at large premiums. They are canny mining entrepreneurs and heavily invested in the companies they manage.
 
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MLX Metal X Limited

OK, since Joe is not able to rename the BTX to MLX, I just create one. Here is the last post from old BTX

exgeo said:
The price of Tin is predicted to stay high due to Indonesia having ordered the closure of some illegal tin smelters in that country. At the time of Renison's closure, Tin was about 8000 USD/t, now it's over 10,000.

Collingwood mine is producing now, Renison is still closed. BTX are doing testwork using hydrocyclones to recover tin from historical tailings at Renison. The same technology could also be used to improve the recoveries of Tin assuming Renison is opened again.

Post the merger with MTX (Metals exploration) BTX will also own the Wingellina lateritic nickel deposit in the Musgrave of WA/SA. 20km of RC drilling and 15km of RAB drilling are ongoing at Wingellina. MTX is profitable and was trading on a PE of 10 before the merger. They have royalties over some of the Mount Keith nickel tenements (BHP) bringing in 5 or 6m per year (at a much lower nickel price than now). MTX was paying dividends before the merger. Wingellina is a world-class deposit containing 1.78Mt nickel and 109Kt Co (181.5 Mt @ 0.98% Ni and 0.06% Cobalt at 0.5% Ni cutoff). Some back of the envelope calculations will show that at the current nickel price of about 32,000 USD/t there's about, well, quite a lot of value in the ground.

Lateritic nickel deposits are not all the same. Some (such as Wingellina) are amenable to an atmospheric heap-leach process as being used by European Nickel at Caldag in Turkey. This will hopefully avoid nightmares a la Minara/Anaconda nickel etc who used pressure acid leach (pressurised sulphuric acid at 225 centigrade anyone?). Of course, Wingellina is pretty remote, being situated on the WA/SA border, not far from the NT border. In addition to the nickel, some tantalising PGM hits were reported such as 4m @ 1.56g/t PGM (136-140m). Not economic in itself, but it was in the same zone as 50m @ 1.42% Ni & 0.06% Co (92-140m) and could therefore perhaps be co-mined. I emailed the company about the PGM and asked if they were going to re-analyse the samples from the earlier drilling programmes for PGM, but they replied that their focus is on Nickel for now. Presumably the current drilling will be routinely analysed for PGM though. Wingellina remains open along strike and it seems likely that there's more to be found.

The managment (Peter's Cook and Newton) is the same as Hill 50 Gold and Abelle Gold, both of which had tired assets that other companies had discarded (sorry, sold), were turned around and then taken over by majors at large premiums. They are canny mining entrepreneurs and heavily invested in the companies they manage.
 
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Re: MLX Metal X Limited

The MLX is the merge of MTX and BTX

Overview:
a. 1bn share fully diluted @ $0.245, market cap at $245m.

b. Projected over $10m/yr royalty

c. A tin producer, with tin price is rising, at $12k/t

d. Key nickel asset Wingellina deposit, 177mt ore at 0.98%, half the size of Weda Bay, and twice the size of Ramu. The Weda is located in Indonesia, sold last year at $300m (CA$270m), The infamous Ramu is in PNG (HIG is caught up in Chinese slavery scandal)

e. The in-ground value of Wingellina deposit is about $60bn. I think anyone should be very comfortable to spend 1c to control $2.61 worth of deposit in Australia, a place with little geopolitical risk...

I guess MLX might not be a good candidate for day-trading, but for investment purpose, it might worth a look.

I like companies with a lot of resources for long term investment. I have used this kind of approach in picking some good stocks such as CMR, HRR, EQN, and MTN at early stage.
 
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WHAAAT??!! A fundamentals-based approach to investing? Squiggly lines is where it's at mate. Head n Shoulders isn't only a shampoo y'know. Get with the times.
 
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exgeo said:
WHAAAT??!! A fundamentals-based approach to investing? Squiggly lines is where it's at mate. Head n Shoulders isn't only a shampoo y'know. Get with the times.
Things never changed over the times, mate. I can still use shampoo to predict everything up to this minute.
 
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A couple of developments on the tin market. The first will not directly affect tin prices presumably, but won't ease the nerves of market participants (unless you're long of MTX of course!).

Bolivia Seeks More Revenue From Glencore After Nationalization
Feb. 14 (Bloomberg) -- Bolivia will seek to keep half of Glencore International AG's profit from two mines in the South American country. The government, which last week seized control of the Swiss commodities trader's tin smelter, plans to rewrite contracts with Glencore to get a larger slice of the profits from the Colquiri and Porco mines, Mining Vice Minister Luis Alberto Echazu said today in a telephone interview. Full article HERE

Commodities: Indonesian smelter's cutoff sends tin prices soaring
By Brett Foley Bloomberg NewsPublished: February 13, 2007
LONDON: The price of tin rose Monday to its highest level in at least 17 years after an Indonesian producer stopped receiving ore from suppliers. Adding to the upward price pressure, a forecast said that Chinese exports of tin would drop 10 percent this year. Malaysia Smelting said that its Koba Tin unit, one of the top two tin miners and smelters in Indonesia, had stopped collecting ore from small miners amid a police investigation into whether it bought ore from unauthorized miners. Full article HERE
 
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If you think you have missed out on WLF today, you should take a serious study at this Tin producer, real production, not greenfield, brownfield or whatever colorfield explorer.
 
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Stockpiles of nickel monitored by the LME dropped 4.3 percent to 3,648 metric tons, the LME said today in a daily report. "The cupboard is bare," Nick Moore, a metals analyst at ABN Amro Holding NV in London, said in a telephone interview. Nickel is "immune" to declines of the magnitude metals such as copper and zinc have registered in the past year, he added.

Tin rose after Indonesia, the world's second-largest producer of the metal, said it may impose a quota on exports to keep prices above $12,000. The proposal would keep the global market from being oversupplied, Mangantar Marpaung, the director for coal and geothermal development at the energy and mineral resources ministry, said in Jakarta today. The nation is trying to curb illegal tin mining. China is the largest producer of the metal. Full article:HERE
 
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What great posts. Been looking at the week and mth chart for more than a while but didnt know what this co/s back ground was. After seeing the posts this morning and reading in detail I went straight out and bought at market. Look at the buys under the bid in comparison with the sells. One to add to on pull backs.inmopn.
 
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danc said:
What great posts. Been looking at the week and mth chart for more than a while but didnt know what this co/s back ground was. After seeing the posts this morning and reading in detail I went straight out and bought at market. Look at the buys under the bid in comparison with the sells. One to add to on pull backs.inmopn.

Why take you so long? You could have look at it a month ago. Seeing you are so excited, and wish you have verified the facts posted. Nothing suggest anything wrong, but ASF is always the secondary sources of info (except some creative ideas)
 
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The total Identified Mineral Resource estimate contains over 2 million tonnes in contained nickel metal and over 150,000 tonnes in contained cobalt. As big as it currently stands, we are yet to realise the full potential of the project area which we believe it still holds potential for the resource to grow significantly larger. In addition, our growing understanding of potential sulphide genesis models and make-up of the large Wingellina layered intrusive complex continues to excite us about the potential for a nickel sulphide discovery, akin to the Nebo and Babel discoveries (WMC now BHP) within a similar geological environment in the nearby West Musgrave Ranges.
Restart of tin mining at Renison is scheduled for the end of 2007. Currently producing tin from Collingwood, QLD.
 
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With my limited knowledge in geology, I am fancying about the Wingellina deposit is a great hedging against the rising nickel price because of the Mickel Limonite deposit (High iron, low magnesium). It is reported that such ore can be sold to steel mill at US$18-20. Wingelina has 213.2Mt.

Not saying it is economic to do so, but definitely it is an alternative way to realize the asset value.
 
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Wingellina Attracts China’s Largest Nickel Producer
Metals X’s Managing Director, Peter Cook said “this is a major endorsement of the potential of the Central Musgrave Project which includes the Wingellina Nickel Limonite deposit. It is a significant step forward for both the Company and the State of Western Australia. The Jinchuan Group is a world leader in both the nickel industry and the construction of, and operation of High Pressure Acid Leach plants.” Wingellina today is estimated to be the 16th largest undeveloped Nickel Oxide deposit in the world and preliminary scoping study works suggest that it may progress into a mining operation producing approximately 40,000 tonnes of Nickel in metal hydroxide complexes also containing approximately 2000 tonnes of recoverable Cobalt metal as a co-product. “The future of Metals X looks bright. Our strategic positioning in both the nickel and tin industries has placed us into the two hottest metals in the base metal market. Through Jinchuan, we will have a strategic partner who has both the financial capacity and technical capability to assist us with the process of turning Wingellina into one of the Country’s largest and long life nickel producers.”
Nickel Royalty Metals X also has a strong nickel royalty portfolio which earns annual royalty income as a percentage of totals sales from the Mt Keith mine and Kambalda (East Location 48 only) mines. In the last quarter receipts from these royalties totalled $2.85 million and these royalties are without exposure to capital and operating risk and provide uncapped exposure to higher nickel prices.
Tin In parallel with its Nickel business, Metals X continues to advance its tin assets. Metals X is currently Australia’s largest tin producer from our newly developed Collingwood Tin Project, albeit at a modest 3500-4000 tonnes per annum. In response to stronger tin prices, Metals X has plans to recommence its Renison Project in the current year. The Rentails tailings re-treatment and tin fumer project has achieved its technical objectives and we are planning to commence pilot testing as a final step before completion of a bankable feasibility study. Collectively, these projects can elevate the Company to be a top 10 global producer of tin
 
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It looks like a bad news for MLX for Chinese invasion. After hitting 38.5c, and then retreated to 35.5c

The placement to Jinchuan is a bit low at 28c, but you can get it at 26c just 2.5 weeks ago.Jinchuan will not selling any of them for a quick profit. They want to hold it so they can have influence on the nickel deposit develop.

13% interest for $32.76m, MLX will have enough money to speed up the project.

As indicated on the ann, JinChuan is particularly interested in the nickel limonite deposit, and in Australia, and with over US$100b in ground value of nickel, cobalt, and Fe.

Anyway, it is very interesting that$ Jinchaun get 28c options from AGM about a year ago, today AGM's SP is 68.5c. This time, it is not option, it is Share, and they paid it outright! How urgent JinChuan is!

Jinchuan like 28, We like 68 (or 69?). A year long is about right to me.
 
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Wingellina scoping study results

Mining-Production The study considered two scenarios of mine life, the first being 46 years, effectively mining out the Measured and Indicated resources and the second being limited to a 20 year term, mining approximately half the known resource, to produce 36-38Kt Nickel/pa. and 2600-2800t Cobal/pa.


Financial-Sensitivity Analysis The Scoping study has been performed at a flat nickel price of US$20,000 per tonne and a flat Cobalt price of US$ 15 per pound. These prices are only 40% of the current spot metal prices but are considered to be more appropriate long-term prices for the metal given the long project life and gestation period of up to 4 years before production could occur. To understand the upside impact, at the current spot price of US$50,000 the NPV (8% nominal) – Pre-Tax is A$21.5 Billion with an IRR of 94.8%. On the downside scenario, a similar estimate of these financial measures at US$15,000 per tonne for Nickel gives an NPV of A$2.6 Billion with an IRR of 22.2%.
 
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Wingellina scoping study results

Mining-Production The study considered two scenarios of mine life, the first being 46 years, effectively mining out the Measured and Indicated resources and the second being limited to a 20 year term, mining approximately half the known resource, to produce 36-38Kt Nickel/pa. and 2600-2800t Cobal/pa.


Financial-Sensitivity Analysis The Scoping study has been performed at a flat nickel price of US$20,000 per tonne and a flat Cobalt price of US$ 15 per pound. These prices are only 40% of the current spot metal prices but are considered to be more appropriate long-term prices for the metal given the long project life and gestation period of up to 4 years before production could occur. To understand the upside impact, at the current spot price of US$50,000 the NPV (8% nominal) – Pre-Tax is A$21.5 Billion with an IRR of 94.8%. On the downside scenario, a similar estimate of these financial measures at US$15,000 per tonne for Nickel gives an NPV of A$2.6 Billion with an IRR of 22.2%.

I bought in at 34cents....I think the market is just starting to realise the value here.....production will take a while but the potential is dynamic...bought my 1st 100k shares....for the bottom draw...comments:2twocents
 
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:) :) Chicken, this one is a winner. I agree with Mmmining that in about a year a share price around 60 - 70 cents is likely, given the company's plans and chinese interests.
 
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:) :) Chicken, this one is a winner. I agree with Mmmining that in about a year a share price around 60 - 70 cents is likely, given the company's plans and chinese interests.

Looking in doing better...MLX put on 6c to 42cents yesterday....Tin prices rising and with their Nickel of 2.5 million tons or at say $4ok per ton makes this stock very appealing...$100 billion of Nickel in the ground...go figure?
 
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