The problem is that the company has no real positive story to tell, other than the SP is ridiculously oversold and that only attracts people who want to catch a falling knife. Hardly a compelling story for future investors.
For investors who are bullish on Tin prices they have to hold their noses and take the risk of Copper prices and the operational risk of Nifty because they have almost no choice if they are in for the tin exposure.
For other people who may be bullish on copper prices there is still the volatility and price risk of copper plus the operational risk of Nifty, and there are a number of better run copper miners on the ASX that give you exposure to the upside of copper plus operations that actually make money and have a lower risk.
If MLX management can turn Nifty around and make it work they will be lauded as heroes, there is no doubt that Nifty is a good asset that has been run into the ground and neglected by previous owners, the only question remaining is Nifty "beyond redemption" or not. It looks like MLX management are going to bet the entire company that Nifty can be turned around and become successful.
MLX Price at posting:
18.5¢ Sentiment: Hold Disclosure: Held
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