While the current SP is saddening, I've managed to mobilise some...

While the current SP is saddening, I've managed to mobilise some capacity to purchase more shortly.
But I won't be buying now as I wouldn't be surprised if MLX heads to 15c by month end on global macro concerns, pure investor frustration and possibly some more angst over the financial results in a fortnight (eg. non-cash writedown). Short interest hasn't really moved so this selling is just people getting out for whatever reason. Should the price stabilise at this level in early September, all things being equal, I will be more than happy to buy.

On the macro side, I'm actually relatively comfortable all things considered. Looks like central banks worldwide are adding stimulus and there is more talk of fiscal stimulus (surely raising long-term government debt now at 1-2% is a no brainer). Both should be supportive of equities and commodity prices but the trade war and Brexit is hurting business confidence and who knows what will happen here. But at least the copper price hasn't capitulated.

MLX is eerily reminding me of another copper play I had during 2009-10. From my entry price, I remember the SP being 60% down with most of that occurring quite rapidly on the back of macro fears and operational issues. I decided to buy a heap more near the low but stupidly sold this parcel soon after making 15% profit within a few days. The stock rallied 10x from there within a year as production ramped up and the world didn't blow up. Major missed opportunity and major lesson learnt.

There are risks no doubt and the debt facility should help to dispel fears of a cap raising. But in MLX is a company with a 50% share in a profitable mine, total ownership of a mine that is being developed to be cash flow generative hopefully by the end of Q1 2020 and a world class nickel/cobalt deposit. All this for a market cap of $120m.