Renison 2019/20 Full Year Production
Metals X Limited (ASX: MLX) (Metals X or the Company) is pleased to announce it has met guidance with production
of 7,182 tonnes of tin-in-concentrate for financial year 2019/20 from the Renison Tin Operation (Renison) in
Tasmania (guidance was 7,100 – 7,300 tonnes of tin1). Renison is 50%-owned by Metals X through the Bluestone
Mines Tasmania Joint Venture2.
• Production of 7,182 tonnes of tin-in-concentrate (prior year 7,124 tonnes)
• Ore mined 848,906 tonnes at 1.18% Sn (prior year 797,979 tonnes at 1.21% Sn)
• Overall recovery 71.7% Sn (prior year 70.9% Sn3)
The updated Mineral Resources and Ore Reserves4 together with the completion of the Area 5 Study and updated
Life-of-Mine plan5 sets the foundation for tin production to increase from current levels to over 10,000 tonnes of tin
per annum from FY2025 as investment in mine development and underground infrastructure allows for increased
production from the high-grade Area 5.
Production guidance for financial year 2020/21 is provided at 8,200 – 8,700 tonnes of tin-in-concentrate.
Facility Agreement with Citibank
In accordance with the Facility Agreement with Citibank dated 29 August 2019 (Facility Agreement) on 30 June
2020 the Company made the scheduled principal repayment of $2,538,462. The current principal outstanding under
the Facility Agreement is $30.5 million.
Under the Facility Agreement the Company is required to remain within certain financial covenants which are
measured for compliance at the end of each calendar quarter. For the quarter ending 30 June 2020 the Company
has not met the forecast cash flow cover ratio (Forecast CFCR) nor the forward debt service cover ratio (Forward
The principal reason the Forecast CFCR and the Forward DSCR have not been met was the decision to proceed
with the Area 5 development at Renison with its capital expenditure of $50 – 55 million (100% basis) over the next
two years. There has been a significant increase in Mineral Resources, Ore Reserves, and projected total production
over a ten year mine life with a projected material improvement in all-in susstaining costs, initially $19,000 - $20,000
per tonne of tin during the ramp-up, reducing to $16,500 - $17,000 per tonne of tin from FY25 when steady state
production of over 10,000 tonnes of tin is anticipated to be achieved. However, over the next two years cash flow is
adversely impacted by the required capital expenditure.
1 Refer March 2020 Quarterly Report.
2 All data in this Announcement is 100% of Renison. The MLX share of stated production is 50%. 3 Renison recovery is now stated as overall recovery which accounts for tin losses both at the ore sorter/crushing plant and the concentrator.
2018/19 recovery quoted in June 2019 Quarterly Report was concentrator recovery of 72.4%. Overall recovery for 2018/19 was 70.9% Sn. 4 Refer ASX Announcement 17 June 2020: Renison Resource & Reserve Update.
5 Refer ASX Announcement 17 June 2020: Renison Area 5 Underpins 10 Year Mine Life.
10 July 2020
ASX RELEASE (ASX: MLX) 2
The other two financial covenants under the Facility Agreement, the Reserve Tail and the Minimum Liquidity Ratio
have been met as at 30 June 2020.
As required under the Facility Agreement the Company has today notified Citibank of its non-compliance with respect
to the Forecast CFCR and the Forward DSCR. Under the Facility Agreement the Company has until 20 July 2020 to
present to Citibank a proposed strategy to cure the financial covenant breaches and to use reasonable commercial
efforts to ensure the strategy is acceptable to Citibank.
Board Changes and APAC 249D Notice
Mr Brett Lambert and Mr Tony Polglase have resigned as directors and Mr Peter Gunzburg and Mr Grahame White
have been appointed as independent non-executive directors.
The Board thanks Mr Lambert and Mr Polglase for their service since their appointment on 24 October 2019 and
wishes them a successful future in their other roles.
Mr Peter Gunzburg has been nominated by the Board as non-executive Chairman and Mr Patrick O’Connor remains
as a non-executive director.
Mr Brett Smith has been appointed as Executive Director. A summary of the material terms of Mr Smith’s
remuneration is set out in Annexure A.
APAC Resources Limited has advised that the 249D Notice served on the Company (refer announcement to the
ASX on 25 June 2020) has been withdrawn.
Copper Assets – Proposed Sale
The Company’s intention to seek offers for the proposed sale of its entire copper asset portfolio, including the Nifty
Copper Operation, Maroochydore Copper Project and the Paterson Exploration Project, as detailed in the Company’s
announcement of 2 July 2020, remains unchanged.
courtesy of Bell Direct
i hold MLX ..
anyone know a super salesman .. they are going to need someone real special
sigh .. just as well i bought in as a tin play or this would be really disappointing