MZI Resources (MZI) released September Q results with 22.0kt of mineral sands production, up 77% QoQ. Total cash costs were $728/dmt, down 25% on FY17, vs the realised basket price of $735/dmt. Importantly, costs are trending down while mineral sands prices have shown a consistent QoQ increase from mid-2016. While the Company’s balance sheet remains stretched, repayment of the US$21m bridging facility to Resource Capital Fund (RCF) has been pushed out to April 2018 (previously due December 2017). At September 30, MZI had $4.8m cash. Hold recommendation maintained.
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