“Hard to reason with the current Val vs the JV partner. I think when they hit the high grade things will change and Renison be making 0.5-1x market cap in EBITDA at spot tin.”
I agree. I think the JV partner is happy with the way MLX has operated the mine - they make a steady profit, and do not have the cross-cultural issues that would come if they managed the mine. In all likelihood the JV partner is probably pissed off with what happened at Nifty as they worry about whether MLX will be a going concern and who will step in if MLX becomes insolvent.
My worry is who will support a capital raising - the previous raisings have left a lot of previously interested insto’s underwater. So I will wait on the sidelines, where I should have been at 20c higher, till Nifty sorted and evidence free cash flow position is at least stabilised.
MLX Price at posting:
7.0¢ Sentiment: None Disclosure: Not Held
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