MMX 0.00% 4.7¢ murchison metals ltd

floods hit murchison metals shipments

  1. 432 Posts.
    These guys no how to burn through cash but not much else.
    What price the CR will be done at will be interesting.
    Compare the pair MMX V AGO?


    Floods hit Murchison Metals shipments Sara-Jane Tasker From: The Australian January 28, 2011 12:

    WEST Australian iron ore miner Murchison Metals has recorded a fall in shipments of the sought-after commodity amid rising production costs.
    The Mid-West miner's quarterly production report for the three months to December 31 shows ore shipments fell 35.6 per cent, from 499,328 tonnes in the second quarter of the 2009-10 financial year to 368,041 tonnes in the same period this year.

    Murchison said floods in December caused road closures and shipping delays.

    Net cash holdings dropped from $102.4 million at the end of December 2009 to $31.3m a year later, with a $21.1m outflow of cash to pay for feasibility studies relating to Murchison's Oakajee infrastructure and Crosslands iron ore miner joint venture plans.

    Murchison's main focus is achieving success in its Oakajee Port & Rail joint venture project with Japan's Mitsubishi, but delays to the schedule for the ambitious undertaking have led the market to question if the miner will meet the commitment.

    In its quarterly report yesterday, Murchison said the major achievement during the period was the completion of the comprehensive technical study to finalise engineering and design parameters for the port and rail infrastructure.

    "The study is being reviewed by the joint venture participants and undergoing further optimisation pending input from the foundation customers," the report said.

    Cash costs for the miner rose to $110 a tonne from $84 a tonne in the previous quarter, while the average selling price or iron ore was $138 a tonne, Murchison said.

    It said the higher iron ore price offset the impact of reduced shipments and higher production costs.

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