I don't post a lot but thought I would have my two bobs worth.
As I see it with MLX:
(a) Working Capital AUD $74m.
(b) Renison cranking with good reserves and exploration potential. Mineral Resource Estimate:
Tin 329,000 tonnes Gross in the ground value 329,000 x USD $20,300 / 0.71 = AUD $ 9.4b (MLX 50%) Copper 86,700 tonnes Gross in the ground value 86,700 x USD $2.91 x 2204 / 0.71 = AUD $ 0.8b (MLX 50%)
(c) Nifty picked up in a mess from previous owners. MLX well down the track making it a professionally run mining operation. Lots of exploration potential. Mineral Resource Estimate:
Copper 682,000 tonnes Gross in the ground value 682,000 x USD $2.91 x 2204 / 0.71 = AUD $ 6.1b (MLX 100%)
(d) Maroochydore Copper Prospect with excellent regional potential. Mineral Resource Estimate:
Copper 486,000 tonnes Gross in the ground value 486,000 x USD $2.91 x 2204 / 0.71 = AUD $ 4.4b (MLX 100%) Cobalt 18,500 tonnes Gross in the ground value 18,500 x USD $16.10 x 2204 / 0.71 = AUD $ 0.9b (MLX 100%)
(e) Central Musgrave Project. Lateritic rather than silicate.
Nickel 1,953,000 tonnes Gross in the ground value 1,953,000 x USD $5.75 x 2204 / 0.71 = AUD $ 34.8b (MLX 100%) Cobalt 154,400 tonnes Gross in the ground value 154,400 x USD $16.10 x 2204 / 0.71 = AUD $ 7.7b (MLX 100%)
(f) All of these metals have declining stocks and prices are significantly depressed because of the US / China trade war. This will reverse and prices will rise significantly. It is simply a mater of when.
(g) All these metals should have significantly increased demand in a greener future.
(h) These are people with a long track record of running mines well.
I do not know why someone would suggest that MLX is worth 10c a share or a MC less than its current working capital but I do not share that view. In the past few weeks I have picked up 500,000 MLX and if they were to go sub 20c I would pick up another 500k. Personally I think that they will be north of $1 within two years. Perhaps I am wrong but picking up 25,000 BHP at $14 to $19 after the Brazilian tailings collapse worked out fairly well for me.
I haven't re-check my figure above and apologise if there are errors but the principal does not change.
DYOR and best wishes,
Tasidevil
MLX Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
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