I can see Renison spinning around $5m a quarter - they’ve still got to sink some capex into opening up Area 5 and tin prices have come off some what.. they only made $4m cash flow last quarter (some working cap swings I believe).
They spend around $2m a quarter in corporate overhead.
Nifty ain’t going to make money at spot copper price for some time. You can see the revised cost figures for 19/20 in the presentation. It’s going to leak somewhere in the order of $5-$10m a quarter and then they need to spend another $5-$10m a quarter in project capex.
So I think they’ll burn around $10-$15m cash per quarter for most likely another 3-4 quarters.. then it will all come good with improved Nifty and Renison mining area 5...well at least that’s the plan.. can they survive till then? Probably, but itll be close.. it’s a big gamble to go at it without the cash in bank and relying on debt
Sustaining capex has come down on an absolute basis but All-in Sustaining costs have increased.
MLX Price at posting:
20.5¢ Sentiment: None Disclosure: Not Held
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