Ann: Metals X agrees to sell Mt Keith and Kingsto, page-5

re: Ann: Metals X agrees to sell Mt Keith and... Hi Haymart,

As a MLX holder for 2 years, you should have a better knowledgement on MLX than me.

There are only two world class undevelopped nickel depoits in Australia, MLX's Wingallina [email protected]%, HRR's Kalgoolie [email protected]%, both of them are larger than BHP's Ravensthrope project.

Rio quit from Kalgoolie this year after they spent $30M in JV partnership. Recently MLX farmed in Rio's Mt Davies looks quite interesting. With JV in Mt Davies, actually Wingallina, Mt Davies and Claudi Hills(MLX) are jointed together.

Nickel project is different from copper because of billions of dollar needed in nickel mining. After GFC, there is likely only one source for such a large fund, from China.

MLX's largest shareholder, Jinchuan, is also the largest nickel producer in Asia. There is rumour that Jinchuan is bidding BHP's troubled Ravensthrope project, but BHP is not willing to sell.

If Jinchuan's bidding is not successful, Jinchuan will definately push MLX's nickel project in advance. This is good, and LME nickel price is close to $20000/T now, which is well above Wingallina's marginal cost of $8000/T.

The trouble of MLX, IMO, is its re-open Renison tin project cost too much money during GFC, and $3M management annual payment is too high judged by their performance.

But IMO, current SP is still quite cheap, or more correctly, I like the words "market is wrong" on MLX.

Short term, I feel HRR may be a little stronger than MLX.

Good luck

Weihua