Shares in copper and tin miner, Metals X fell historical lows yesterday after falling 2.3% to 8.6 cents before recovering to end a tough session unchanged at 8.8 cents.
That was after the company told the ASX that Canaccord Genuity and Hartleys have been hired to review the company’s copper mines including the Nifty and Maroochydore Copper projects.
“Canaccord and Hartleys will, in conjunction with the Board, explore various options for the copper assets including joint ventures and the partial or complete divestment of some or all of the assets,” the company told shareholders.
“The company sees significant value in the Nifty Copper Mine existing resource and production-ready infrastructure, its leverage to improving copper prices, and significant exploration potential though its Paterson regional landholding.”
The Nifty copper mine was mothballed in November last year because it could not meet production and cost targets.
In the November statement, the company said “The decision on Nifty will allow the Company to focus on its 50% joint venture stake in the world-class, long-life Renison Tin Operations in Tasmania, Australia’s largest tin producer.”
In the June 30 results Metals X revealed a write-down in the value of the Nifty mine of $64.2 million. In November it estimated it could cost another $35 million to close the mine and put it on care and maintenance.
The company revealed in a December 18 update that it has also encountered problems at its Renison tin mining operation in Tasmania with lower production and grades and higher costs.
“Production for the second half of 2019 and the first half of calendar year 2020 is expected to be lower than initial guidance due to lower grades of ore mined from the Lower Federal area (due to geotechnical considerations requiring a changed mining sequence and increased pillar requirements) and delayed stoping from Area 5 (updated designs and sequencing considerations as the Area 5 project progresses).
Consequently, previous guidance for financial year 2019/20 is downgraded as follows: Production of tin in concentrate of 7,000 – 7,400 tonnes (previous guidance 8,000-8,500 tonnes);All-in-sustaining cost of $18,200 – $19,100/t Sn (previous guidance $17,000 – $17,500/t Sn).
The half-year results next month will contain more detail.
