MLX's tin division reported a loss 4.75 million dollars on the latest half yearly report. It has a production cost of $16000 per ton with only 4 years of reserve. The current tin price is $20000 per ton. Its tin mine is operated on a razor thin margin with further loss expected. For investors like me and others, a short life and loss making mine is worth nothing.
MLX’s nickel assets development is at early stage. A lot of capital is required. 500 million or even 1000 million, who knows. But look at PAN and other well managed nickel mines, they aren’t very profitable anyway. For investors like me, I would not invest in MLX’s nickel project.
As such, I would only value MLX at 100 million for its cash and investment. And I won’t buy MLX’s share above 7c.
Therefore, MLX will need to offer at least 1 WGR share for 3 MLX shares to be fair.
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