- Metals X is down 21.95 per cent today after forecasting declining production rates in its December quarter at the Nifty Copper Project
- In the September quarterly report, the company said it has made positive progress
- The December quarter has been negatively impacted by delays in bringing targeted stopes online, lower-than-planned equipment reliability and underground productivity
- Metals X is down 21.95 per cent on the Australian Securities Exchange this morning, trading at 16¢ apiece
Metals X is down 21.95 per cent today after forecasting declining production rates in its December quarter at the Nifty Copper Project.
The company recently released its September 2019 Quarterly Report, saying it has made positive progress on each key lead indicators in an effort to reach its target.
Metals X is attempting to increase Nifty Copper’s mining production rate to 2 Megatonnes per annum.
“These key lead indicators are: confidence in the resources and reserves, development of mining stocks, progress on ventilation issues and resolution of paste delivery systems,” the company said.
Today, Metals X said results pertaining to the increase in the mining rate are yet to be released.
“In particular, production for the December quarter to date has been negatively impacted by delays in bringing targeted stopes on line, lower than planned equipment reliability and underground productivity,” the company told the market.
Recent speculation indicates APAC Resource, linked to one of Asia’s richest families, is trying to launch a soft takeover without lodging a formal offer. APAC is Metals X biggest shareholder.
On October 18, Metals X released a statement saying that a marketing company was working on behalf of APAC and had made calls to Metals X shareholders in regards to the upcoming AGM.
“In one confirmed instance, the marketing company working for APAC Resources claimed to be calling ‘on behalf of Metals X and APAC’. This is a false and misleading statement which could cause significant confusion,” the company said in October.
“APAC Resources has been regularly accessing, on a confidential basis, the progressive results of shareholders’ proxy voting in regards to the Annual General Meeting via a Federal Court Order,” it added.
Metals X said it received complaints from multiple shareholders who have lodged votes, in support of the company, against Resolution 6. The shareholders have been receiving calls and emails from APAC to change their votes to be in favour of Resolution 6.
“Notwithstanding the Board’s recommendation to vote against Resolution 6 at the Annual General Meeting, shareholders are entitled to vote freely on resolutions in any way they wish,” the company said
“However, the Board is extremely concerned regarding what it considers to be excessive campaigning methods of APAC Resources,” it added.
Resolution 6 was to appoint Brett Smith, APAC Executive Director, as a Director of Metals X.
On October 24, shareholders voted against Brett becoming a Director.
Brett told The Sydney Morning Herald that APAC was not launching a soft takeover.
“If we wanted to take over the company we would have made an offer,” Brett added.
APAC believes that Brett would have made an excellent addition to the board to ensure that the review is carried out objectively.
Metals X is down 26.83 per cent on the Australian Securities Exchange, trading at 15¢ apiece at 12:40 pm AEDT.