This is why I’m hoping the C&M call is made very shortly. They had $50.9m cash at 30 sept plus a further $8.1m from the retail SPP post quarter end is $59m. Renison will be spinning $6-$9m per quarter I think.
How much do you think they need to put it on C&M? I’d have thought something like $10m.. and then you’ve got the liquidation of inventory etc to help you out. I’ve had a look at their balance sheet and what there is in the way of leases and take or pay contracts which may need to be broken, it doesn’t look that bad.
Let’s not forget Jinchuan offered $50m for 20% of Wingellina back in 2011... Renison is about to print cash as they enter high grade zones and drill results look hugely promising. Then we have rentails, further exploration around Renison, the Paterson land and Nifty + Maroochydore which have over 1mt of Cu and well over $100m of infrastructure. This is currently trading at A$100m EV, I think it’s a steal..so long as they stop lighting up cash at nifty.
The trading action (along with lack of sub holder notices) makes me think a big player is churning volume and shaking out smaller players whilst forcing mgmt hand on the C&M.
MLX Price at posting:
14.0¢ Sentiment: Hold Disclosure: Held
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