Has anyone actually crunched the numbers on this stock? I spent a couple of hours looking at the past year...costs of production and sales price. The price of this stock seriously does not make sense where it is right now, and I think that's why the Chinese owners have been accumulating as per the last release. Based on the yearly earnings to June, the PE ratio is 3.5 (It hasn't been updated properly on most platforms). Q3 was terrible for various reasons and their production costs were about equal to the cash from sales. Q4 was a lot better. They were selling for about $30,000 (Aud) per ton of Tin, with cost of production in the 20,000s I think from memory. And even considering all this they still made lots of profit.
Now, the price of tin is closer to 50,000 AUS per ton. If it stays at this level as it is supposed to, the earnings are going to be stellar. Let's assume a profit of around $25000 per ton, and producing around 8000 tons. This means about 200,000,000 on yearly profits, which is not far from where the market cap is sitting now. The price needs to grow. If Tin goes even higher then the story gets even crazier. This one is definitely below the radar.
MLX Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)