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Keysbrook becomes cash flow positive

9th September 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The Keysbrook mineral sands operation is expected to achieve positive cash flow during the September quarter.

Owner MZI Resources said on Friday that based on current production performances at the Keysbrook mine, and the prevailing and forecast commodity prices and exchange rates, the project would continue to remain cash flow positive.

“It is enormously satisfying to see Keysbrook achieve sustainable positive cash flow so early in its operating life, especially as it comes before we have completed the scheduled plant upgrades which we expect will take production to targeted levels,” said MZI MD Trevor Matthews.

“We are encouraged by the steadily growing evidence of improving pricing and demand for high-quality titanium dioxide feedstocks, including Keysbrook leucoxene, which is very positive for the long-term outlook for Keysbrook and MZI.”

The Keysbrook project is designed to produce over 95 000 t/y of high-grade mineral sand products, and is expected to have a mine life of more than 15 years.

Mineralisation also remains open to the north, south and west, and MZI has now started activities to support the potential expansion of the project, including discussion with property owners in the region for land access within the ore reserve footprint, and engagement with the Environmental Protection Authority on the required environmental approvals as well as local shire council and regional development bodies regarding future mine development plans.

Edited by Creamer Media Reporter

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