The downside to holding onto Nifty is that it is keeping the share price incredibly low while also requiring the company to issue additional shares, both to fund the $10m study, and quite likely to fund ongoing C&M and debt repayments from the previous run they had at trying to make it profitable.
I had hoped Renison cashflow would be able to keep up with the debt repayments, C&M and corporate costs, or near enough that the ~$25m in working capital they held at the end of last quarter would see them through until Nifty and the remaining copper assets could be sold, for hopefully enough to pay down the majority of the remaining debt.
Now however Renison cash flow will be directed towards Area 5 capital costs, which is likely a better use of cash anyway. I wonder how much support the copper business would receive if MLX tried to spin it off with an IPO?
MLX Price at posting:
8.4¢ Sentiment: Hold Disclosure: Held
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