Mozambique Mining: Mustang Resources to review strategy following disappointing maiden tender

Mustang Resources has announced a review of the future of its operational and marketing strategies, following disappointing results from its first ruby tender.

The ASX-listed company confirmed that it was undertaking a detailed assessment of the market intelligence gathered from its first ruby tender, after only 8 out of 21 bid schedules were sold.

Despite having some 405 000 ct on offer, Mustang only sold 29 463 ct at its inaugural tender, raising proceeds of A$713 456.

Mustang said on Tuesday that the results of this detailed assessment would play a key role in determining the company’s future operational and marketing strategies.

Following the recent tender, Mustang announced a delay in a planned plant upgrade at its Montepuez ruby mine, in Mozambique. The company had initially planned to reinvest a portion of the proceeds from the maiden tender to increase its processing plant capacity to between one-million and two-million tonnes a year, compared with the current processing capacity of about 328 000 t/y.

Mustang shares lost the gains made on Monday, when the company announced a maiden graphite resource at a project in Mozambique, and traded at 4c a share on Tuesday, down from 5c a share earlier in the day.