I'm somewhat surprised by today's price movement. Sure the Renison costs are seemingly higher but there was relatively no new information gathered from the half yearly unless of course I'm totally missing something.
Cash at year end was clearly available in the quarterly report last month so I wasn't expecting a great P&L. I expected the market would have priced this in and noted a fair amount of capital investment and exploration over Q4. I expect the pay off from these activities to come over the next quarter or so with improved operating performance and new reserves statement.
The prospect of another capital raising so soon is a concern but Rentails needs to be funded eventually. The most disappointing aspect was the lack of a media release or presentation with the results. This is IR101. But I'm sure the new CEO will learn from this as he is put his money on the line too.
At a $200m market cap, a fair chunk in cash, two operating mines, and a world class cobalt-nickel deposit, this is priced cheaper than many exploration companies. Some will sell but I will continue to average down. I never make an investment based on take over potential but I seem to attract my fair share with my investment style. Time will tell.
MLX Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
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