Metallica Minerals Limited (ASX: MLM) is an Australian bauxite developer with assets based in Queensland’s Cape York peninsula. The Company is transitioning from minerals exploration to development and production, concentrating on its bauxite assets with the goal of becoming a successful, sustainable and profitable bauxite miner producing 5-7Mtpa of bauxite over the coming 3-5 years.
To achieve this the Company has focused its efforts over the last 24 months on the Urquhart Bauxite Project which is a part of the Cape York Bauxite and Heavy Mineral Sands Joint Venture which is located on the west coast of Queensland’s Cape York (MLM owns 50% and is the Operator). The Urquhart Bauxite Project (Project) has a JORC (2012) Measured and Indicated Resource of 9.5Mt with the Pre-Feasibility Study highlighting the Projects potential to deliver strong financial returns with minimal capital expenditure. The Company has received both Queensland and Commonwealth government approvals for the Mining Lease. The Company is now focusing on obtaining the final approval associated with the haul road that links the Project to the established barge loading facility at Hey Point which it believes will be received in time for bauxite production to begin following the end of the 2017/2018 wet season. Metallica is now fully funded through to the start of production following the completion of a Rights Issue, the conversion of options and the availability of a standby credit facility which has bolstered the Company’s cash reserves.
As Metallica moves towards operational production and revenue generation from the Project the Company is investigating opportunities to unlock value from its non-core assets while also assessing potential bauxite acquisitions that will add value for shareholders.
Urquhart Bauxite – Operations
Chief Executive Officer Interview
Index Rates: BAU
Source: CBIX Index Wrap – February 2018