Playing round with some valuation metrics it could be argued that MLX post BB is currently the cheapest it has traded since becoming net cash (debt payed off), these numbers for EV do not consider any value for investments/con notes. The below numbers are assuming that the current quarter is repeated for the annual basis. I think 46k AUD going forward for spot tin is quite achievable and am bias to the upside considering another 5% draw on SHFE this week, closing below 5k inventory for the first time in some while. With a large chunk of capex upgrades now complete and a decent proportion of UG infra/plant having been upgraded I think costs should be consistent or reduce in coming quarters which may lead to further margin expansion. Brett has mentioned that BB price to be reviewed at FY & HY with HY due in February, I do expect that the BB price is increased in February considering the healthy tin price and Rentails FID being min two years away.
MLX Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
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