Matrix Metals does not disappoint!

Matrix Metals is so far up 11% today and I suspct it will go much higher. The annual report was released 15minutes ago and it does not disappoint. Here is a basic summary of the points made:

1. 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.
2. Matrix started copper cathode production from its Cloncurry heap leach operations in June'07
3. Matrix is currently producing 360tonnes of copper per month, and is ahead of schedul ramping production up to 420 tonnes per month
4. 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
5. 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.
6. 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).
7. Matrix expects the current strong copper prices to remain so it remains unhedged exposure to copper
8. 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