This is pure speculation on my part. The only logical reason I can think of for the relentless selling at these depressed levels is that there is some distress at Old Peak and they have to raise cash no matter what. I don't know anything about Old Peak. Maybe they dabbled in China RE. That would be good enough to cause a veritable whole in PnL. Also the whole business of selling down their stake via swap is highly unusual.
Unfortunately MLX will stay a value trap until either tin price bounce and/or management returns capital to investors via buyback. Further, conservatively assume MLX monetizes a A$5000 spread @ 5000 tpa, hence generating an annual profit of 25mn. Valued at P/E of 5x that's worth 125mn. Now add 120mn cash and 40mn of marketable securities. Anyone selling in mid 20c is stupid or desperate. Likewise, not doing a buyback of, say, A$20mn size is stupid as well.
MLX Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
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