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- Resource explorer Myanmar Metals (MYL) maintains it’s in a strong financial position in the face of the global COVID-19 pandemic
- MYL holds substantial cash reserves and has no debts owing — meaning the company can still progress its Bawdwin project with minimal disruption
- MYL is in the process of attaining a 50-year mining lease, pending the approval of permits, but may face delays because of the pandemic
- Some exploratory drilling at the site has been suspended due to logistical and personnel constraints arising from travel bans and lockdowns
- The company has also indefinitely postponed its Sydney Roadshow, timed to coincide with the Mining Journal Select conference in Sydney next week
- Myanmar Metals is up 22.2 per cent, with shares trading for 3.3 cents apiece
Mineral resource explorer Myanmar Metals (MYL) has issued an investor update on its Bawdwin Joint Venture (BJV) and ongoing financial position in regards to the COVID-19 pandemic.
The global virus crisis has put many companies in dire straits as travel restrictions and market uncertainties put the brakes on productivity. Myanmar Metals, however, has told investors it maintains a strong financial outlook and is well positioned to ride out the worst of the outbreak.
Bawdwin Joint Venture
The Bawdwin Joint Venture was formed in June 2018 when MYL acquired a 51 per cent stake in the prospect with local partners WMM and East Asia Power, who each hold a 24.5% interest.
The site has been mined on-and-off since the 15th century, but 2019 resource estimates indicate substantial silver, lead and zinc deposits still remain to be exploited. Exploration continues as the lode seems to extend longer, deeper and wider than previously thought.
MYL is in the process of attaining a 50-year mining lease, pending the approval of permits. The company was hoping for approval by June, but the COVID-19 outbreak may yet delay the approval process.
On-site work on the prospect’s feasibility study has concluded but is yet to be finalised. The COVID-19 outbreak will not affect the completion of the report as no further travel is required by those involved.
Overall, the company is well positioned to continue advancing the Bawdwin Project towards the production phase.
Financial Outlook
MYL maintains the impact of coronavirus on the company’s activity has so far been manageable, given its strong financial position and presence in Myanmar.
MYL has a strong cash position, with $16.6 million in reserve. It also has no debts and no need to raise additional funds.
Just to be on the safe side, company management is closely monitoring all expenditure to ensure that MYL can sustain its current strong financial position through the pandemic crisis.
As a result, two drilling programs at the Bawdwin site have been postponed or suspended to minimise further expenditure.
The ER Valley copper prospect drilling has been postponed until the next dry season. Follow-up drilling is being planned for the next dry season, based on the analysis of the samples already returned. Results will be interpreted and announced in coming weeks.
Planning and exploration at the Locrian gold prospect have been suspended entirely to keep expenditure to a bare minimum.
Executive Chairman & CEO John Lamb says “Myanmar Metals has taken prudent and necessary steps to respond to this global pandemic. We are in a strong financial position and we intend to push hard to deliver key project milestones in the coming months.”
Roadshow Postponed
Myanmar Metals has postponed its plans to conduct an Australian institutional roadshow next week. The roadshow was originally timed to coincide with the Mining Journal Select Sydney 2020 Conference, which has now been postponed by the organisers due to the COVID-19 outbreak.
The company has not yet suggested a future date for the roadshow.
Myanmar Metals is up 22.2 per cent, with shares trading for 3.3 cents apiece as at 3:40 pm AEDT.
