Join our daily newsletter At The Bell to receive exclusive market insights
- Myanmar Metals (MYL) has flagged that the COVID-19 pandemic may delay construction at its Bawdwin project until 2021
- Travel and site-visitation restrictions could cause delays to the project’s financing process, the negotiation of offtake agreements and thus to construction
- On the other hand, Myanmar Metals still expects the Definitive Feasibility Study to be completed and it to receive a foreign investment permit this year
- In terms of finances, the company had $15.3 million in cash reserves and no debt at the end of the March quarter
- It has also implemented a range of cost-cutting measures
- Company shares closed 2.44 per cent lower at 4 cents each
Myanmar Metals (MYL) has flagged that the COVID-19 pandemic may delay construction at the Bawdwin Project until 2021.
Myanmar Metals holds a 51 per cent participating interest in the project, located in the Shan State in Myanmar. Joint venture partners Win Myint Mo Industries and EAP Global each hold a 24.5 per cent.
Travel and site-visitation restrictions due to the pandemic could cause delays to the project financing process, the negotiation of offtake agreements and thus to construction.
On the other hand, Myanmar Metals still expects to receive the Myanmar Investment Commission foreign investment permit at some point this year as explained Executive Chairman John Lamb.
“Despite the global uncertainties created by the impact of the pandemic I am pleased with the recent progress made with the Government in Production Sharing Agreement negotiations.”
“The impact of the coronavirus on travel to and from Myanmar and on the Bawdwin approvals process has been mitigated as much as possible by the continuing commitment and efforts of our local partners, but there may be some delay in this process due to travel and workforce restrictions and the Company will continue to provide updates to the market on progress.”
Completion of the Definitive Feasibility Study also remains on track for this year, with all necessary fieldwork already complete.
In terms of finances, the company had $15.3 million in cash reserves and no debt at the end of the March quarter. In addition, the company has implemented a range of measures to reduce expenditure and has reduced wages as well as director and consultant fees.
Company shares closed 2.44 per cent lower at four cents each.
