Such a strange report. After a quick read, I feel like Bell Potter is trying to make excuses for MLX!
Not sure where to begin:
Cash position now just $32m. Cash is simply pouring into the gold assets, which is great, except, they are not making any money and wont for perhaps the next 12months at least.
Rover 1 - development capex of $125m!!!!! (Bell even hints that only most of the capex will be internally funded......) make of that what you will.
Supposedly, MLX have the best hedge in Australia and only have a negative 16m on the books. Um... there are lots of producers with no hedge. Also, EVN just hedged 50k at $1791!
I would love to post more on this right now, but busy. Suffice to say, I feel very vindicated with my earlier analysis, MLX is cheap, but for very good reasons.
Almost tempted to change my sentiment to sell, at least for the short term, as something is going to give, i,e. They take on a heap of debt, or... raise some cash.
MLX Price at posting:
99.5¢ Sentiment: Hold Disclosure: Not Held
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