I believe a long term hold on this will outperform any trader, trading the wider market.
There has been uncertainty placed into MMX shareprice, thanks to the media, who are possibly driven by someone very unhappy that MMX has half of OP&R. The question is MMX has put an estimated price of $5billion on the project and they have said it may have cost saving come off that. Even if it was $6billion which is entirely speculative, MMX only has to find funding for 25% of that after the government puts in their 700mill, so MMX has to find about $1.1bill to $1.35bill in funding.
Mitsubishi will take care of their 25% and will take care of finding funding of 50% through OP&R.
Long term positives are that the base cost of using the infrastructure will be level for Crosslands, however other users will have to pay more and more as time goes on. i.e even if Crosslands pays the higher price along with the others OP&R will receive the increase anyhow.
OP&R will base the costs of using the infrastructure to make a profit. Therefore MMX will gain profits.
MMX Price at posting:
$1.10 Sentiment: Hold Disclosure: Held
