- There are 550 mining companies listed on the ASX but just 10% of them are in production. Of those 10% Matrix is now one of them.
- Matrix started copper cathode production from its Cloncurry heap leach operations in June'07
- Matrix is currently producing 360tonnes of copper per month, and is ahead of schedul ramping production up to 420 tonnes per month
- Matrix has 4300km2 of tenure around the existing operations. The Mt Isa Inlier - a geological window into older Paleozoic rocks is very prospective for copper and other minerals
- Copper prices are testing record prices. Back in 2001 copper prices were languishing at 80c/lb, but today they are $3.70/lb. Whilst copper prices are up 380% the benefits of higher $US prices are somewhat offset by a 40% increase in the $A and the higher capital & operating costs of commissioning a mine.
- Matrix has exploration JVs with Deep Yellow Ltd (where Deep Yellow has increased its JV commitment to uranium exploration) and Xstrata (looking for deeper sulphide ores at McCabe).
- Matrix expects the current strong copper prices to remain so it remains unhedged exposure to copper
- The company is considering an expansion from 5500tpa to 11,000tonnes - but this is tentative
The upside in productive capacity will tend to counter any concerns of softer revenues from softer copper prices, as will any fall in the $A (in response to softer commodity prices).
If you want further information on Matrix have a look at their website at http://www.matrixmetals.com.au/.
- Andrew Sheldon www.sheldonthinks.com