Hi Guys, my broker brought MLM to my attention today I have an over view here. Just wondering if the team here agree with these points, and that maybe the SP is held back until ML is issued, or is there more to it than that before the SP starts to rise ?
MLM should have a rerate when mining commences;
$80m pre-tax NPV for bauxite. MLM has 50% so its share is $40m. Fully funded to production which is expected in Q317
Exploration upside to extend mine life and scope to improve the NPV. High quality, low energy, high grade, low impurities.
MLM carries >$20m in tax losses – not likely to pay tax for a while.
AUZ is spending $10 million to earn 50% of SCONI which I believe is Australia’s most advanced Cobalt – Scandium project. MLM’s share is at least $10m.
Side note: instead of spending $10m to earn 50%, AUZ could spend $20m to buy MLM = 7.2 cents per share.
$4 million in cash. No debt.
HMS plant in a shed probably worth about $3 million.
Other assets – graphite, HMS, silica sands (value = ???).
The total from the above is close to $60 million or about four times the current level so hopefully as milestones are achieve, the value is unlocked.
I look forward to comments - thanks.
MLM Price at posting:
5.6¢ Sentiment: Buy Disclosure: Not Held
