Quarterly Activities Report
- Record quarterly product sales of 23,361t ~ Full year 62,473t.
- Quarterly sales receipts of $14.8M from product sales comprising: 8,945t of L88; 10,500t of L70 and 3,916t of zircon concentrate.
- Full year sales receipts of $51.1M from product sales comprising: 29,538t of L88; 17,126t of L70 and15,809t of zircon concentrate.
- Full year HMC production of 93,118t, including 22,172t in the June quarter.
- New specialty leucoxene product delivered for customer trials.
- Martin Purvis appointed Managing Director.
- Funding secured to progress strategic land access program at Keysbrook.
- Capital restructuring process underway.
- Mineral sands market conditions continue to improve.
During the June quarter MZI made substantial progress with improvements to operational efficiency and process controls at the Company's Keysbrook Operations. This systematic approach is set to deliver a more stable production platform, along with better plant availabilities, that will pave the way for increased productivity levels going forward.
The June quarter was a period of operational consolidation. Activity at Keysbrook focused on capitalising on the successful commissioning of the new Mine Field Unit (MFU) in the prior quarter by increasing mining production in the eastern mining location and maintaining consistent feed to the Keysbrook Wet Concentrator Plant (WCP). This resulted in significantly higher mining volumes and subsequent ore feed to the WCP in the quarter.
At the Picton Mineral Separation Plant (MSP), MZI utilised 37 days of allocated production capacity during the quarter. This compares with the 52 days of entitlement taken up in the March quarter and correlates with the comparatively lower product output from April to June, despite similar HMC production in both periods. On average MZI has access to 45 days of processing capacity each quarter, but actual allocation and take-up depends on the timing of both production cycles and shipment schedules.
The MSP is currently the subject of increased technical focus in order to optimise both throughput capacities and product separation, so as to facilitate variations in the HMC feedstock composition. In June, as part of this process, the MSP was successfully configured to produce a specialty leucoxene product aimed at the titanium welding rod market. The trial of this product is under way and could open the door to potential new markets for the Company.
With general market conditions for mineral sands products continuing to strengthen, MZI enters the new financial year with significant operational momentum, and looks forward to delivering a step change of improvements in the year ahead.
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About MZI Resources Ltd
MZI Resources Ltd (ASX:MZI) is a mineral sands company focused on the high value minerals of zircon, rutile and leucoxene based in Perth, Western Australia. Its flagship operating asset is the Keysbrook Mineral Sands Project, located 70km south of Perth. At the Keysbrook mine, mineral sands are mined and processed to produce heavy mineral concentrate (HMC) which is processed into final products under a toll treating arrangement with Doral Mineral Sands Pty Ltd at the Picton Mineral Separation Plant (MSP) near Bunbury.
The Keysbrook mine hosts a world-class zircon / leucoxene ore body with total Ore Reserves equivalent to over 15 years of production at design output rates, and total Mineral Resources equivalent to over 30 years of production. Production commenced in late 2015, making the Keysbrook Project Australia’s first – and the world’s largest - primary producer of high value leucoxene.
MZI Resources Ltd