Personally I think a some of capital and some of debt is...

First 97 Last

Share
Profile

Follow
arsenic

15,634 Posts.

1429

01/04/19

12:01

Post #: 37949518
Share

Originally posted by RoyE: ↑

Hi Kotare
We should hear more from MLX in April re Nifty's Reset Plan (see announcement 12 March) - this plan is to be a strategic roadmap for the Nifty operation going forward.

Personally, a significant capital raising would not surprise me - reading between the lines it seems that Nifty was starved of capital investment, adequate maintenance etc under its previous ownership. Also, it seems that significant capital may be required to improve ventilation etc in the new mining areas. Whilst another capital raising is not ideal, I'd rather they bite the bullet and do this, the sooner the better, and obtain the required funds to fix Nifty and set the operation up as a strong cashflow generator going forward. I'm sure the market would prefer this to persevering with an undercapitalised operation, constant threat of capital raise overhanging the market etc.

Re Wingellina, whilst this is a large and world class Ni/Co resource, the development cost is huge ($1 billion+), so personally I cant see much happening on this in the current environment.
The Patterson region is very prospective, however management is pre-occupied with fixing Nifty (as they should be), so I don't see much happening here in the short term.

Expand

Personally I think a some of capital and some of debt is appropriate at this point.
I don't care if the latter is quasi capital with debt e.g. convertible notes.
The facts are we have an operation with cash flow and a project we are trying to achieve the same on.

Last edited by arsenic: 01/04/19

MLX Price at posting: 24.8¢ Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

What's causing the cost-of-living crisis, and how to navigate it

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint