ASX RELEASE
21 FEBRUARY 2020
FY2020 HALF YEAR RESULTS
Metals X Limited (the Company) reports its financial results for the half year ended 31 December 2019.
Key financial details and comparison to the previous year:
Summary | Half year to | Half year to | Variance | ||||||||
($M) | 31-Dec-19 | 31-Dec-18 | |||||||||
EBITDA | (12.6) | (15.3) | 2.7 | ||||||||
Depreciation and amortisation | (14.4) | (14.7) | 0.3 | ||||||||
Impairments and other losses | (33.8) | - | (33.8) | ||||||||
Net profit after tax | (61.6) | (36.1) | (25.5) | ||||||||
Cashflow from operating activities | (5.3) | (24.1) | 18.8 | ||||||||
Capital re-investment | (26.9) | (18.9) | (8.0) | ||||||||
Cash flows from financing activities | 61.4 | (44.8) | 16.6 | ||||||||
Cash and cash equivalents | 40.5 | 11.4 | 29.1 |
Earnings Before Interest Tax Depreciation and Amortisation (EBITDA1) for the Renison Tin Operations (Renison) was $10.5M (2018: $0.7M). Revenue of $38.5M (2018: $36.6M) was higher than the previous year due an increase in production, which which has been partially offset by a lower tin price. The cost of sales of $35.6M (2018: $43.2M) was lower after the previous period was impacted by the drawdown of the large low- grade ore stockpile developed prior to the construction of the ore sorter.
EBITDA for the Nifty Copper Operations (Nifty) was ($18.9M) (2018: ($12.4M)). Revenue of $70.2M (2018: $55.4M) was higher than the previous year as a result of higher copper production and the timing of copper shipments. The cost of sales of $95.8M (2018: $74.9M) was higher than the previous period due to increased operating costs associated with the increase in mining activity and drawdown of ore and copper concentrate stocks. On 26 November 2019 the Company suspended mining operations at Nifty and subsequently placed the mine into care and maintenance.
EBITDA for corporate activities was ($4.2M) (2018: ($3.6M)), which was higher than the previous period due to costs associated with a re-organisation of the Company's executive management team and Board of Directors.
The Company recognised impairments and other losses of $33.8M (2018: Nil) during the half year. These
related to care and maintenance costs of $10.1M (2018: Nil) and asset impairments of $15.4M (2018: Nil) at
Nifty and a rehabilitation provision adjustment of $8.3M (2018: Nil) at Renison.
THIS ANNOUNCEMENT HAS BEEN AUTHORISED BY THE BOARD OF DIRECTORS OF METALS X LIMITED
FURTHER ENQUIRIES
Patrick O'Connor
Patrick.O'Connor@metalsx.com.au
CORPORATE DIRECTORY
Level 5, 197 St Georges Terrace Perth WA 6000 Australia
PO Box 7248
Cloisters Square PO WA 6850
+61 8 9220 5700 reception@metalsx.com.au www.metalsx.com.au
ASX Code: MLX
Further details on the results of the Company's operations are included on page 3 of the Interim Financial Report for the Half Year 31 December 2019.
Executive Chairman Mr Patrick O'Connor said, "This has been a challenging period for Metals X. The Board made the difficult decision in November to suspend operations at Nifty and place the operation on care and maintenance. Ultimately this was done to try to preserve value from what we still consider is a very significant asset. Nifty has a large copper endowment, impressive exploration potential and production-ready infrastructure that provides excellent leverage to any improvement in copper prices. An asset impairment at this stage is a recognition of the impact of the decisions taken at Nifty. Production and earnings and Renison have been stronger but an even better result was impacted by lower tin prices. We remain excited by the opportunities at Renison with a recent increase in resources2, the Area 5 Mining Optimisation Study and Life of Mine Plan on track for the June quarter 2020 and our ongoing focus on costs and driving cashflow."
END
- EBITDA stands for Earnings Before Interest, Tax, Depreciation and Amortisation and is non-IFRS financial information and is not subject to audit. This is a widely used "industry standard" term that certain investors use to evaluate company performance.
- Refer ASX Announcement 30 January 2020, Renison Resources Update
ASX RELEASE (ASX: MLX) | 2 |
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Metals X Limited published this content on 21 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 February 2020 02:41:09 UTC