Melior Resources

Primary ticker: TSXV:MLR
Stage of development: Development
Primary minerals: Ilmenite, Phosphate rock

Live financials

Melior is a TSX-V listed entity whose major asset is the Goondicum ilmenite and phosphate rock mine in Queensland. Melior is planning to restart Goondicum before the end of 2018 at production rates of ~180ktpa and ~50ktpa of ilmenite and phos rock respectively. The Goondicum project demonstrates very attractive investment returns by virtue of the low capex required for a restart and competitive operating cost and will form the platform for the creation of an industrial minerals and metals growth entity..

Management Profile

Mark McCauley – CEO and Director

Mr McCauley has close to 30 years experience in the resources industry and has had significant previous success building companies in the coal and gold space and is looking to emulate that success in the mineral sands/industrial minerals sector with Melior. Mr McCauley’s previous experience includes holding both technical and commercial roles within operating company’s as well as leading a private, resource centric investment company.

What is your rationale for attending 121 Mining Investment?

The corporate strategy being implemented for Melior includes restarting an existing asset in the short term and then building on this as a platform for growth in the industrial minerals and metals space via M&A. This strategy will likely see regular capital raisings to fund the growth strategy and hence raising the corporations profile and show casing successful implementation of this strategy at various milestones is an important part of executing the plan.

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

The titanium feedstock sector is going through, what appears to be, a sustainable up cycle with the demand/supply analysis indicating this should continue for at least the next 3 or 4 years. With the imminent restart of Goondicum to take advantage of this strong market, Melior is making a low risk transition to a producing entity very quickly. This is contingent on funding and the Company is currently working to put a funding package together which includes a proposal from its major shareholder for a US$7.0 million debt facility.

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

3 Months:

Finalise the funding package for the Goondicum restart and commence the six month reconstruction program.

6 Months:

Commence project commissioning within six months of kicking off the construction program.
Progress the M&A strategy.

12 Months:

Complete successful Goondicum commissioning and transition to being a genuine cashflow positive generator for Melior. And complete at least one M&A transaction.

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

Finalisation of the funding package which allows the formal commencement of Goondicum reconstruction is key. This provides the platform from which the corporate strategy is to be prosecuted and is an important milestone for the Company. The corporate strategy is a definitive play on a strong commodities (titanium feedstock in particular) market with current pricing needing to be sustained or strengthened to maximize the Company’s financial performance.

In a sentence, what do you think makes your company such a compelling investment?

Melior has an existing asset which has attractive financial metrics and can be back in production in a short period for a low capital cost. Management believes that the corporate strategy of building on this with targeted M&A will provide genuine leverage to an improving resource sector.