This company will live and die by the productivity of nifty, no two ways about it. Renison whilst profitable will not support an operation of the scale of nifty.. and especially not as it has been the last six months from a cash flow perspective. $33m at the start of Jan.. you know 4,000t of Cu ain’t going to be cash flow positive and chuck in development nifty could be $15-$20m down the hole for the quarter even with the tick up in Cu price. Renison whilst a decent asset was interrupted by fires and still teething the ore sorter.. I would call cash neutral or potentially cash positive by $5-$10m. Either way they are scraping the barrel and the new mgmt team surely will want another quarter and another $50m to turn things round. I smell an equity raise whilst copper price is strong.. debt will be hard to come by considering experience. Takeover is a very real option.
MLX Price at posting:
26.5¢ Sentiment: None Disclosure: Not Held
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