MLX have guided that AISC will be AUD $1,050 for FY. On top of this you need to include exploration, non-sustaining capex, and an apportionment of G&A. This is likely to be quite high for MLX has it is commissioning gold plants and firming up reserves ahead of expansion.
Regardless, with the increasing AUD POG (now $1,625) the margin for MLX is getting better and better.
MLX is in a large ramp up of its gold division bringing on stream newly acquired assets over the coming 24 months and exploring brown field tenements to fill their mills.
MLX has an ambition to go from 150k oz production p.a. to +50ok oz within a few years. This would be a massive achievement and a great opportunity for investors wanting to maximise leverage to an improving AUD margin within a non-escalating cost setting (unlike the mining boom where costs got out of control). I also think MLX presents low(er) management risk as these guys run mines. They are not a small exploration company full of geo's that are trying to build and plant and become miners with all the errors incurred along the way.
I am looking forward to the Quarterly and MLX's progress on this.
In addition I am looking for confirmation from management that a recent report is correct in that tin production will increase from 7kt to 8kt for the current FY.
Cheers
John
MLX Price at posting:
$1.04 Sentiment: None Disclosure: Held
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