Transcription of Finance News Network Interview with Metals X Limited (ASX:MLX) CEO, Peter CookJohn Treadgold: Diversified mining group, Metals X Limited
(ASX:MLX) is Australia’s largest tin producer, a top ten gold producer and owns the world class Wingellina nickel project. Joining me today at the ASX Investor Series in Sydney is the Company’s CEO Peter Cook. Peter welcome.
Peter Cook: Thank you John, thank you.
John Treadgold: You’ve expanded gold production this year with acquisitions of Alacer Gold Corp (TSE:ASR) and Reed Resources Limited
(ASX:RDR). How do these fit with your other mines and what will be the impact on earnings this financial year?
Peter Cook: The impact is really positive for the Company, Metals X is a diversified miner and it’s a little bit of a template for the Company to build a gold division. So they bring some profit, some earnings and a production portfolio of assets to the development assets that we already had in the gold division itself.
John Treadgold: You’re Australia’s largest tin producer, how do you see the future of tin production in Australia?
Peter Cook: Well we’re Australia’s only tin producer too; Australia’s had a long history in tin. We’ve been the owner of the tin mine in Tasmania, the Renison mine, which is steeped in Australia’s history as probably one of the largest underground mines ever in Australia’s history. It’s been going for 40 years to date and it’s got a very long life now, so for ourselves, we see a very long history. For some of the emerging players, in ten years we’ve seen none of them be able to get up. It’s really driven by the commodity price and the barriers to entry in terms of capital. So we see a very bright future for ourselves, but we see it pretty tough at current commodity prices, for some of the juniors.
John Treadgold: Beyond that, what will you and Metals X be focused on in the next 12 months?
Peter Cook: The immediate focus is the expansion of our gold industry. So our gold division, with bringing the central Murchison project that production back into our portfolio. And also trying to advance the financing of our very large Wingellina nickel project.
John Treadgold: What key factors will impact growth in the resources sector going forward?
Peter Cook: It’s really very much a Chinese story. I suppose a subjective view of what’s happening in the world today is an industrial revolution, driven by China. And a revolution that doesn’t just involve the Americas or the United Kingdom, this time a revolution or industrial revolution that involves a third of the world’s population. And it’s China’s demand for metals at different phases in the cycle, which will drive the demand for metals going forward. At the moment it’s been iron ore and coal, and all the way through would be energy. As urbanisation exists, it’ll move on to some of the more downstream base metals. So we see a strong future for some of those base metals moving forward.
John Treadgold: Are there any key milestones or goals on the longer horizon for Metals X?
Peter Cook: The obvious major milestone is the development of our Wingellina nickel project, nickel cobalt project, which is a world class project. It’s the fourth largest undeveloped nickel project in the world today, it’s got very large capital cost and we’re in an industry where there’s a fair bit of pessimism with metal prices at the moment. But this is a mega project and it’s a project which will run for 40 plus years when it starts.
John Treadgold: Peter Cook, thank you for the update from Metals X.
Peter Cook: Thank you very much John.
Ends
