Mineral Commodities

Website: www.mineralcommodities.com
Primary ticker: ASX:MRC
Stage of development: Development, Production
Commodity: Mineral Sands, Graphite
Project to promote: Tormin Mineral Sand, Skaland Graphite, Munglinup Graphite

Live financials

MRC is a leading producer of zircon, rutile, garnet and ilmenite concentrates from its Tormin Mineral Sands Operation on the Western Cape of South Africa. In October 2019, the Company intends to complete the 100% acquisition of Skaland Graphite AS, operating the Trælen Graphite Mine and Skaland Processing Facility in Norway. Skaland is the world’s highest-grade operating flake graphite mine in the world, the largest flake graphite producer in Europe and fourth largest producer globally outside of China. The planned development of the Munglinup Graphite Project, located near Esperance in Western Australia, is consistent with the Company’s strategy to capitalise on the fast-growing sustainable renewable energy storage and electric vehicle revolution as well as downstream vertically integrated value-adding.

Management Profile

Surinder Ghag, Technical Services Manager

Dr Surinder Ghag is a highly qualified metallurgist with 21 years of broad experience in management and operations, project development from studies through to commissioning, business development and business improvement. His commodities experience cuts across copper-gold, mineral sands, tin and iron ore in companies including Consolidated Rutile, Ok Tedi Mining, Nautilus Minerals and Atlas Iron.

Peter Fox, Corporate Dev & IR Manager

Peter transitioned from stockbroking and corporate advisory with a particular focus on capital raising in the natural resources sector.

What is your rationale for attending 121 Mining Investment?

The company is expecting to significantly expand its Mineral Sands mining operations and production profile in South Africa and also explain its emerging Graphite strategy. MRC will introduce the acquisition of the Skaland Graphite mine in Norway and talk to the recently released DFS on the Munglinup Graphite Project in Australia. MRC is also developing an exciting downstream story having recently received Commonwealth funding to commercialise an environmentally sustainable and economic process for the production of high purity graphite.

What recent news would you like to highlight to investors attending?

The planned expansion of mineral sand mining and production at the Tormin Mineral Sands Operation in South Africa – Acquisition of Skaland Graphite As – DFS Munglinup Graphite Project – MRC’s successful CRC-P grant application to develop a commercial-scale process for producing high purity graphite (>99.95%).

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Significantly expand Mineral Sand mining operations and production profile in South Africa to annualised concentrate production of between 400ktpa to 600ktpa of HMC.

6 Months:

– Complete fine flake concentrate optimisation (>95%TGC) and increase coarse flake distribution at Skaland. Increase production to 16ktpa.
– Finalise downstream study work on Skaland and Mungingup graphite concentrate.

12 Months:

Complete FEED of Mineral Separation Plant at Tormin to produce finished Illmenite, Zircon/Rutile and Garnet products.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Negative sentiment towards the graphite market on the back of the Syrah Resources downward revision. MRC takes a very different approach to the graphite market with smaller incremental, ex Africa, ex China production in Teir 1 jurisdictions with a complimentary downstream strategy, using green Nordic hydropower and environmentally sustainable purification methods in the fastest-growing EV market globally, Europe.

What do you think makes your company such a compelling investment?

MRC has the potential to double its revenue on the granting of an expanded mining right at Tormin. This will allow the company to continue its strong history of dividend payments, already returning over A$18.8M to shareholders making it the highest dividend paying mining company on the ASX.