Hi BeboWhen considering what price a share can get to, you need...

Hi Bebo
When considering what price a share can get to, you need to look at the no of shares on issue and the assets held and their value and earning potential. MLX has nearly 1 billion shares on issue so at $1 per share it would be be worth $1 billion dollars (1,000 million dollars) - that's a lot! To support a valuation of a billion dollars MLX assets would need to generate net profits consistently of say $100+ million pa. Where is this going to come from? Nifty is arguably worth little as it's not making any profit - it's been losing money hand over fist. Wingellina has some value but this is relatively small based on huge capital cost to develop. Renison has some value (brokers value MLX's 50% share at around $135 million or approx. $0.15 per share). So all up at present maybe $ 0.20 per share. That's miles off $1 per share so the answer to your question is No, MLX can't reach $1 per share in the short to medium term. Long term anything is possible if Nifty and Wingellina are successfully sold and Renison outperforms strongly into a stronger Tin demand/price environment ($1 per share is still miles off even in a strong Tin environment).