Proactiveinvestors recommends

Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	MMX
Latest Price:	0.44 (1.16% )
52-week High:	1.56
52-week Low:	0.24
Market Cap:	190.25M

1 year chart

1 day chart

Murchison Metals Full Murchison Metals profile here

Murchison Metals (ASX: MMX), a member of the Australian Securities Exchange S&P/ASX 200 Index, is establishing world-class iron ore mining and infrastructure businesses in Western Australia’s emerging mid-west iron ore province.

Murchison is a 50% shareholder in Crosslands Resources Ltd, the owner of the operating Jack Hills iron ore project, and also has a 50% interest in Oakajee Port & Rail, a dedicated infrastructure provider which is developing a major deepwater iron ore port at Oakajee and an associated heavy haulage rail network. The remaining 50% of Crosslands and OPR is held by Japan’s Mitsubishi Development.

Murchison Metal's Jack Hills iron continues to ship - despite economic conditions

Wednesday, January 07, 2009 by Andrew McCrea

Murchison Metals (ASX:MMX) has provided an update on its business activities.

The company's 50% owned iron ore mining business, Crosslands Resources (the remaining 50% is owned by Mitsubishi Development Pty Ltd) has advised that regular iron ore shipments continued from the Jack Hills mine in Western Australia during the December quarter, despite the challenging market conditions affecting the iron ore industry.

In a statement, the company said, "this continuity of supply reflects the excellent relationships established with customers over the initial years of operation at Jack Hills and the high quality of Jack Hills’ ore."

A positive sign was the market evidence now that indicated, "Chinese ore stockpiles are falling and spot prices are showing some improvement from the lows reached in the first half of the December quarter." Crosslands continues to book forward sales with customers in Asia.

Murchison Executive Chairman Paul Kopejtka said Murchison was pleased with Crosslands’ performance in the current conditions.

“The continuity of shipments from Jack Hills is testament to the strong relationships established with customers since we began developing the Jack Hills project in 2006, and the benefits of having Mitsubishi as our partner,” he said.

“Whilst the current market is challenging, we remain confident in the successful long term development of our iron ore mining and infrastructure businesses in Western Australia.”

Murchison has approximately $160 million in cash and no debt.

Comment

Murchison Metals appears to have further upside as events unfold in 2009. Its strong cash position and the quality of the Jack Hills product and Mitsubishi relationship provide a platform for future growth.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.