Yes, you are correct with the critique regarding the recognition of cash, investments and other assets. I did initially begin with a FCF/EV yield calculation, but it became too difficult to follow and pretty fiddly for where my modelling capabilities are at for the meantime.
From the most recent Quarterly, we have 90.1m cash in the bank, which translates to approximately 10c per share, so it's important to keep that in mind with the sensitivity tables. I chose to strip out the investment values as these will fluctuate a lot, and while it may not be the most valid method, you are essentially getting the investments/shares held for 'free'.
It is also important to note that due to the pile of cash in the bank, should the company choose to buy buck shares, this would decrease the share count, increasing the ECF yield above, and would hence increase the valuation accordingly. Definitely exciting times ahead for this company. I'm just waiting for a little more certainty around China's lockdowns which is driving the tin price declines.
All IMO, DYOR
MLX Price at posting:
50.0¢ Sentiment: None Disclosure: Not Held
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