- Myanmar Metals (MYL) has provided an update on operations, which have been impacted by the recent political coup in Myanmar
- The company has been working to protect its local staff as well as its Bawdwin and Tarlay assets in Myanmar
- In response, Myanmar Metals has initiated cash management strategies, modified its exploration drilling program and sought extensions on ongoing due diligence processes
- The company’s operations are unlikely to be impacted by the United States’ sanctions on Myanmar’s current government
- Myanmar Metals has been in a trading halt since February 1, when it traded at 7 cents per share
Myanmar Metals (MYL) has provided an update on operations, which have been impacted by the recent political coup in Myanmar.
On February 1, Myanmar’s military forces seized power after arresting and detaining members of the country’s democratically elected government. A State of Emergency was called at the time, which the military claimed would last for one full year.
As a result, the company's operations in Myanmar face an uncertain future.
The military’s political coup has resulted in new ministers being appointed to lead the Ministry of Investment and Foreign Economic Relations and the Ministries of Natural Resources and Environmental Conservation. This may impact decisions made by the new military-led government about Myanmar Metals and its presence in the country.
Several world leaders have spoken out to condemn the coup in Myanmar, with some going as far as imposing economic sanctions. U.S. President Joe Biden has imposed such sanctions on Myanmar’s government and entities associated with its military, with countries like the United Kingdom and Canada following suit.
However, Myanmar Metals has been advised that the U.S. sanctions are not targeting any entities or individuals which the company does or has done business with. As such, the sanctions imposed by the United States are unlikely to impact the company’s proposed operations in Myanmar.
Since the coup on February 1, the company has taken actions to implement safety protocols for its local staff and to safeguard its projects and assets in Myanmar. In particular, Myanmar Metals intends to keep its Bawdwin and Tarlay Projects safe and operational, with some adjustments.
The company has modified the scope of the exploration drilling program currently underway at the Bawdwin Project, with drilling expected to cease once one hole is completed at Mt Teddy. Myanmar Metals will also minimise expenditure at its Tarlay exploration project.
While Myanmar Metals is continuing with its due diligence on the Wuntho Project, the company has sought an extension on the evaluation period. This is due to the company’s present policy of avoiding non-essential travel in Myanmar.
Myanmar Metals’ Executive Chairman and CEO, John Lamb, commented that company shareholders are justifiably concerned about the uncertainty caused by the recent political events in Myanmar.
“While our shares are suspended from trading, we are seeking clarity on the status of the Bawdwin Project and will aim to provide this information to shareholders as soon as practicable,” he said.
“I will re-iterate a message I expressed earlier this month, Myanmar Metals is committed to Myanmar and the Bawdwin Project. We trust that in due course the situation will be resolved in the best interests of Myanmar’s people and we continue with our investment,” he added.
Myanmar Metals has been in a trading halt since February 1, when it traded at seven cents per share.