Some of the Rentails studies have been delayed until Q4 2023. I think we would be looking at a 2 year time frame to begin construction if it goes ahead. I'm assuming we have around $150m in cash to be announced shortly ($124m plus delayed cash from 3rd qtr plus cash generated Dec qtr), plus NC1 shares and options, plus CYM CN's which will come due before then but is hard to value.
If we generate $50m free cash flow per year then in 2 years we would have around $250m in cash plus whatever NC1 and CYM nets us. Regardless of how much the latter nets us we have more than we need. If construction is over say 18 months it's likely we are generating an additional $75m in profits as well.
I think we can do a dividend / buyback and fund Rentails.
MLX Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
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