MLX on Talk Ya Book, page-2

Thanks @chipshuffler.

Whilst the price of Sn is still on the rise I thought his $60k AUD maybe a little ambitious especially when it was compared to last quarters $44k which was net of treatment and refining charges (TC/RC) which appear to be a cost of around the 7% mark if we consider an average AUD cash Sn price in the last qtr of circa $47,300 and the report stating a sale price net of TC/RC of $44k. That means his $60k call is really $64k ($47,500 US) and it is currently sitting at around $52,500 AUD ($39k US) so the current price is still some 20% below his target average for this quarter..... never say never and I hope he is right but maybe a little ambitious, maybe he meant $60k AUD before TC/RC which means it shouldn't be directly compared to the $44k last quarter.

In any case let's assume its $60k before TC/RC and that cost is 7% and now compare it to last qtr cash flow assuming all tin produced is sold and paid for:

September quarter we produced 1,235 (MLX share) and our margin was $22k AUD ($44k net of TC/RC - $22k AIC) therefore an operating cash flow of $27m last quarter.

OK now let's use the $60k target Sn price this quarter before TC/RC.

Assume December quarter production matches the 1,235 last qtr (MLX share) we now have a margin of $34k AUD ($56k net TC/RC - $22k AIC) therefore a target/potential operating cash flow of $42m AUD.... this is massive (if achieved) for a company with a market cap of $330m (debt free).


An announcement of a buy-back or dividend would have to put a rocket under the SP.... surely.