I think that MLX will always be undervalued relative to it's gold mining peers.
The reasons include:
(1) diversified portfolio including tin and nickel assets
(2) relatively low liquidity
(3) A major Chinese shareholder acting as cornerstone holder (no M&A prospects)
And temporarily there is the execution risk to get the oz up to c. 500k oz p.a.
However, for investors that are focused more on the LT it is a good opportunity to slowly and steadily keep accumulating as the liquidity allows.
MLX has a very robust balance sheet and growth profile in it's gold division that will, over time, provide ongoing capital gains in addition to the dividends.
This is a company that I lose no sleep over at night (unlike some in my portfolio !!)
Cheers
John
MLX Price at posting:
$1.26 Sentiment: None Disclosure: Held
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