My musings only, and working on industry averages plus my perception that Mallee have put together an excellent team, I expect they will start out at the higher end AISC for Oz producers but over maybe a 12 month period, longer if they dont get the full $70M in the CR, they should be very competitive and be heading for the lowest levels of AISCs in Oz. Keep in mind also that most of MYL board have taken on operational roles so corporate costs should be lower than most. The best AISC I've seen or heard in the past few months was US$9800/t.
I'm waiting to see the prospectus before I say more but I'm also making sure there is cash sitting in my bank account in preparation for the CR which must be getting close. Ultimately, I believe Mallee will do a good job on the ground, have great exploration upside, want to build an empire etc. Therefore, Mallee will be highly leveraged to the Nickel price and at current levels I suspect they will do very well, potentially even in the first quarter. I am of the opinion that nickel will do well over the next few years, therefore I expect MYL will do better.
MYL Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
