If this goes ahead this should be very good for MLX.
Post the transaction we could look something like this.
Debt reduced from $31m to $7m
$34m interest in any success at Nifty by way of convertible notes
$10m copper contingent payment coming our way from Capricorn Copper Holdings Pty Ltd
The Wingellina nickel project with options being explored
A tin operation likely to start delivering $10m+ a quarter based on:
Tin price of $31,500t AISC of $20,500t (margin of $11,000t) Quarterly production of 2,200 Approximate cash flow of 2,200 (production) * $11,000 (margin) = $24.2m MLX 50% share $12.1m.
So, we could see earnings per annum of circa $35-$40m so a PE of say 10 we could justify a market cap of $350m+ or a SP of 38c. If this proceeds once the trading halt is lifted, I strongly believe the MLX SP will skyrocket at least past 25c initially.
All in my opinion of course.
MLX Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
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