Business Description:
Murchison Metals Limited (MMX) is an iron ore exploration and mining company focused on the Jack Hills project and the development of region infrastructure in the mid west region of Western Australia.

Strategy Analysis:
MMX aims to create shareholder wealth through mining and exporting high quality iron ore to world markets from Western Australia's mid-west region. In the mid-west, MMX owns 50% of the Jack Hills iron ore project and 50% of the independent infrastructure business, Oakajee Port and Rail (OPR). The remaining 50% in each project is held by Mitsubishi Development, a subsidiary of Mitsubishi Corporation. The JV with Mitsubishi was selected on the basis of Mitsubishi's ability to provide: financial resources, development capabilities and, marketing, technical and management expertise. Murchison Metals reported negative cash flow of $6.11m for the quarter ended 30 September 2011. Operating cash flow for the period was $(15.96m). Payments for exploration and evaluation were $(6.72m). Investing cash flow was $(12.60m). Financing cash flow was $22.45m. Cash in hand at the end of the quarter was $6.29m. Key activities during the quarter included: the Jack Hills Expansion project recommended for approval by the EPA; the shipping of 357,831t of direct shipping (DSO) lump and fines by Crosslands; and the Oakajee Rail Corridor approved by the WA Government.