The Indian management of ABY seem to think that with the sale of the low grade Mt Gordon deposit-though biggish, it will get about $41m of environmental bonds money back. Plus min $5m for the deposit, which would provide about 60% of the purchase price to MLX in scrip, if accepted. They may strip this out first?
The low grade nature of the concentrate shipped may be hard to sell without a captive smelter. If this is sold the question is whether the Indians would continue to buy the concentrate. The alternative would be to boost the plant and concentrate it more to make it more saleable. I know nothing.
Its a countercyclical thing but looks pretty high risk. With the sinkhole the losses have been savage in 15.
Looks like an unhappy workforce too. FIFO operation. Maybe they haven't been providing the blokes with steak in the canteen? This is basic fare for miners together with potatoes and beer. Lots of curries? hard to drive a big dump trick sitting down with 'hot ring'.
MLX Price at posting:
$1.38 Sentiment: Buy Disclosure: Held
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