With the improvements at Renison, what do we think of the chances of throughput increasing to 800kt per year at an improved grade (refer recent announcements) of say 1.5%, leading to MLX’s share of ebitda nudging $70m on an annual basis? Strikes me this is very long life and therefore deserving of a far higher ebit multiple than some have suggested. Seems like a great price to be accumulating. I can see 80c within 12 months, perhaps sooner, if there begins to be some real belief in the Nifty turnaround. Assuming all the ducks line up ( which, of course, they rarely do), this has a chance at $2 within 2 years, in my humble view.
MLX Price at posting:
25.3¢ Sentiment: Buy Disclosure: Held
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