How do they get out of this one? Infrastructure boom on the way and assets apart from Tin that are hard to get going. Barring an offer to good to refuse they do not want to let go of anything. M/Cap circa $73 mill. About $50 mill required to get Nifty open pit moving. So a CR would have to be massive. It will not work this way. They have to get that sort of money from another source or sell the project. The only money they could raise through a CR would be a contribution towards the cost. Tin receipts will cover working capital costs so no CR for that. Scoping study stage NPV for Nifty $A180 mill and $A60 mill for heap leach. As prices increase its likely the NPVs will also.They may look for a JV for Nifty???? IGO pitching in with Paterson. Maroochydore a fair way off as is Wingellina - but handy assets. Nifty has been the problem and so far development activities have been a failure. Would someone else make it work? Or can they finally get it right? Technically we should in theory see a bounce at some stage. Selling has been consistent the last week or so.
MLX Price at posting:
8.0¢ Sentiment: Buy Disclosure: Held
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