The Euroz report is probably the most unvarnished, level-headed report I've seen on MLX.
It is worth reading both on the choices facing management and the potential upside for the company.
My key take-aways were:
* Renison is now generating real free cashflow, leveraged to a potentially higher tin price
* CMGP more likely to be a partnered development rather than MLX building its own mill
* Rover and Wingellina are long term sleepers that will continue to tick-along
MLX management is clearly taking a cautious and steady approach. Having the strong and growing cash flow from tin stands MLX apart from some of the other emerging gold producers now grappling with significant cost overruns and high production costs.
There's seems little weight in the theory that the company is being set up for a Chinese take-over. The Chinese already own half of the Renison tin mine and would appear happy having the offtake agreement plus an experienced team familiar with the Australian environment running the mine.
Besides, according to the Euroz report, the MLX Chairman and MD together hold close to 125 MILLION shares. They're hardly going to be lining up for a low-ball take over bid.
So, watch this space. The ducks are being lined up. 12-18 months should hopefully see real value finally being reflected in the share price.
MLX Price at posting:
15.0¢ Sentiment: LT Buy Disclosure: Held
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