It was a very good meeting and despite my previous research, meetings etc I was glad that I made the effort to come.
I had a number of conversations post meeting with MYL people to dig deeper as well.
I think for people that are still assessing the company the slide on page 5 of yesterday's presentation is a great place to start.
View attachment 1370415That one slide explains why I am involved with MYL. It is a world class Tier 1 asset at pre-production stage. It is a stand out against peers. It has a current resource in excess of 80 million tonnes and growing. The grade is better than most and will probably grow over time as new high grade lenses are found. That tenement has a lot of potential for additional high grade discoveries.
There is an experienced management team guiding the company through to either production or take over and well aware that both are real possibilities. John Lamb in presenting made the point that if u look at slide 6, the owners of other projects of both scale and grade are owned by the likes of Glencore and Teck. The implication of course was that there was a high probability that a major would ultimately own MYL. If you look at the Taylor comparison slide you might get some ideas on potential timing, possibly 18-24 months from here.
A great deal of time was spent explaining the importance and quality of relationships with the government and it was clear that they have a very strong and productive relationship. One point that was made, which I was unaware of, was that MYL already have a production licence by virtue of historic mining. Regulatory issues will not slow the process of getting to production.
Current PFS is going to see the benefit of the new western hanging wall deposit. What was expected to be waste in the initial pit design is turning out to have increasing volumes of high grade ore. Not only is the ore going to get added to the reserves and production schedule but the expenses allowed for waste removal are going to be significantly reduced as well. The current NPV is likely to rise significantly as well.
There will likely be a constant flow of news over the next 12 months as studies are completed and exploration is continued.
Locally at Bawdwin they are beginning to employ and train locals who have been waiting for work for decades, living in hope that the mine would re-open. Management are very focussed on social responsibility issues on that front.
They also made the point that China was a major player in the area. The local population is largely of Chinese ethnicity and concentrate will end up in China. Contrary to popular misconception, there are no Rohingya or Rohingya issues in this region of Myanmar. It looks like I will be doing a site visit in about 8 weeks time and I look forward to both seeing the geology and the local towns etc.
I am very comfortable with my current investment in MYL and will be rolling a lot more in over the next 6 to 12 months.
Feel free to ask questions on any thing I've left out and if possible I will respond but I have a busy few days.
PS Lycopodium working on metallurgy etc, CSA doing most of the rest.
