Interesting threads on MLX this week after a long period of silence on the message boards, which has been strange at a time when the separation into two companies is going to prove/disprove a lot of what Cook has been talking about for a while.
Also, we've got all the unknowns of the Trump presidency. Generally, I think that MLX is positioned ok as we go into the split. In one scenario, Trump follows through with the rhetoric and we get trade and currency conflicts. Amid the mayhem it's better to be holding a gold producer than almost anything else. In the other scenario, Trump's impact is milder and fiscal/infrastructure spending stimulus is helpful for markets shorter term. Maybe we get a relief rally and more upward trend in tin and copper prices. Plus the dollar maintains its current strength, which is good for Wesgold and Metals X, which have a lot of their costs in AUD.
All the same, MLX and Wesgold both need to come up with some decent operational numbers in the next six months if they are really going to move. To be fair, the management team has done this before, and a better-than-expected turnaround at Nifty would validate their approach again. Throw in the talk of Wesgold interesting some of the bigger miners as a future acquisition, plus the signals on tin supply turning more in MLX's favour, and both stocks could go on a run?
MLX Price at posting:
$1.41 Sentiment: Hold Disclosure: Held
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