I am not necessarily the smartest kid on the block valuing mining assets so will not have a guess. I tend to look at what the company has been worth in the recent past and I look at what it is likely to be worth in two or three years. Perhaps the company is fairly valued if you had a fire sale of its assets today. I really would not know.
I look at where I think it will be in 2 or 3 years. I believe they will get Nifty running smoothly, Renison will continue as it has in the past, tin, copper, cobalt and tin prices will rise appreciable and I see no reason they will not be back above $1. Wingellina may not happen for some time but it is an elephant, they own it and it will be developed one day maybe in JV with a major.
I think MLX has quite a lot of blue sky that is not reflected in current share price. Again I am no expert but I think Nifty will turn out to be a very good investment on their part in that like Renison they will keep finding new reserves in front of their mining and it will have a long successful mine life. It is also a similar mining operation to Renison and suits their expertise. Unlike many other mining companies they are not all over the place and very focused on making this work.
I also have a philosophy that the market reacts too high / low on good / bad news and MLX is overdone on the low side.
BW
Tasi
MLX Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
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