Fully diluted the market cap at 15c will be around $125m. My view is that even if they get Nifty cashflow neutral, which they should do by mid 2020, the sum of the parts is way in excess of $125m. They are not only “fixing” Nifty, there is a clear plan to lift Renison ( and they have had significant resource success there also).
About 18 months ago, respected Analysts foresaw value of around $600m for MLX (refer MLX website for all the old broker reports). Now, a lot has happened in that 18 months, and there are no guarantees in this wild world, but I can see a market cap around that $600m in the next one to two years, if the stated goals are achieved- perhaps sooner, as the market begins to “believe” in the turnaround. From what I see, this MD is a straight shooter and telling it as it is. Markets eventually like that.
The upside is even greater if they get Nifty truly profitable. Time will tell
MLX Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
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