Murchison Metals
Murchison Metal's Jack Hills iron continues to ship - despite economic conditions
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.
Other Murchison Metals news
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06/02/09 Murchison Metals provides Chameleon litigation update
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04/02/09 Murchison Metals and Mitsubishi increase iron ore resources at Jack Hills to 1 billion tonnes
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02/02/09 Murchison Metals inks maiden resource at Rocklea Iron Ore Project
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21/11/08 Murchison Metals news gets better - Oakajee Port









