The Greenleaders report is an excellent insigcth inot the comapany. It does bring ito focus the challange facing the directors. While the co. has plenty of cash and projects ay decision to comit needes to be correct. Eg. IO fthey comit to gold in the CMPG and the gold price goes down thay could put the co back years. If Rentails is tried and the Sn price stalls or there are technical diffculties a simialr result. Wingellena is all about predictions of the Ni price and discount rates.
I feel the Tennant Creek decline is an excelent stop gap. Itgets them down to the ore and derisks but doesn't fire the shot till confident. Even with the CMPG they're keeping options open till after the DFS with consolidation potenltial.
Cash is King at presnt. So while the SP is at a huge discount to the NPV of 42c. There may be some element of fair discounting for a misstep. A defence it that case would be to excise and recapililise that division via a float. (I have soem experience of this form seeing Straits carved up.)
Having said that. I think that the directors have the ability and are earning their pay a lot more in this co. than many others(notably RDR). Let shope they get it right and steadily monetize the optionality. They could well build another WMC for all of us.
MLX Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
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