Increase in tin price = increase in operating margin = increase in profit.
Last year the operating margin was ~50% (income $110M / revenue $218M), and the average tin price was US$30,290.
The current spot price is US$37k - so an equivalent operating margin would be around 60% (US$160M / US$268M), income of US$160M...
Given DRC issue and shutdown of AFM (4-6% global tin production), if tin price gets to $45k (just an example close to where it was in 2022) - you get operating margin of 67% (US$219 income / US$327M revenue). US$219M income is A$353M and takes no account of the current cash position... Anyway huge margin expansion on the table here, and soon a positive franking credit balance - so boomers be happy with a dividend soon.
MLX Price at posting:
68.0¢ Sentiment: Buy Disclosure: Held
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