fat prophets says buy at 21, page-32

for you spottygoose

well guys with the current focus on the LME on Lead/Tin prices what better time to have a closer look at MLX, Australia's largest Tin producer and as of 2008 the worlds 6th largest Tin producer.

Also they control the enormous Wingellina Nickel Deposit which is larger and higher grade than BHP's Ravensthorpe Nickel Project.


Now a closer looks at MLX

Shares 915,335,378
Options 20c 110,495,600

Current undiluted market cap $402 million


Reason to buy into the MLX story

-Current Nickel royalty from Mt Keith/Kambalda $16-20 million per year(at no cost to MLX)
-Currently producing Tin from Collingwood Project (exposure to rising tin prices)
-Production at Renison/Mt Bischoff Tin Projects late 2007
-Feasability Study underway Rentails Tin Project production early 2009
-Strong Cash Position
-Strong Institutional Support
-Top 6 Shareholder control 50% of company
-Massive upside through Wingellina Nickel Deposit (value aud $100 billion)
-Projected EBITDA 2008 $100 million or PE 4.4


A closer look at MLX Projects

Collingwood Tin

The Collingwood mineralisation is greisen style within granites. The mineralisation occurs as a series of close spaced sub parallel siliceous-sheeted greisen lodes that trend north-south and dip steeply east. Tin occurs within the lodes as granular, sub-spherical grains of cassiterite between 0.5mm and 2mm in diameter. Reserves estimates as of 30 June 2006 total 953,900 tonnes at 1.19% Sn with a larger resource base of 1,280,900t at 1.27% Sn.

Yearly Production 3500 tonnes Tin
Projected Earnings of $15-20 million per year (with upside due to tin price)


Renison/Mt Bischoff Tin

Renison Resources 6.61 MT @ 1.6% SN
Mt Bischoff Resources 1.90 MT @ 0.96% SN

It is MLX intention to restart the Renison Tin Concentrator and treat ore from both deposits from late 2007

Yearly Production 8500 tonnes Tin
Projected Earnings of $60 million per year (with upside due to tin price)


Rentails Project

The Rentails Project is based on the re-treatment of historic tailings from over 40 years of mining at the Renison Bell Mine. Metals X is completing a feasibility study into the extraction of tin using a combination of ultrafine gravity and floatation techniques to produce a low grade concentrate for fuming and generation of a higher grade and sale-able tin concentrate.


Rentails Tin Project - 17.9 MT @ 0.42% Sn

Due to commence production in 2009 at a rate of 6000 tonnes of tin per year



Wingellina Nickel

The monster project of MLX at an inground resource of over $100 billion it is no wonder that the Jinchuan Group of China (China's largest Nickel Producer) has taken a 13% stake in the company, and has first rights for any offtake agreement)

With a current resource of 213 mt @0.95% nickel and 0.074% Cobalt

A recent scoping study found that at commodity prices

$20,000 tonnes nickel
$15lb cobalt

Wingellina would have a NPV (8%) of $5.3 billion or $5.30 per share

And a yearly profit of around $330 million which is almost equal to MLX current market cap.

http://metalsx.com.au/pdf/1176344469.pdf


Current Nickel Royalty

Metals X has significant assets in the form of production royalty streams, payable by Australia's premier nickel producer BHP Billiton and sourced from two of the world's largest and most productive nickel fields being Kambalda and Mount Keith. In addition Metals X owns royalties over significant land positions in the Mt Keith district and covering large tracts of highly prospective nickel tenements (Kingston Royalty).




With the increase in volume over the last couple of weeks, I have no doubt that we have started to see a major re-rating of the stock, which is being driven by institutional buying and an increased focus due to the increased price of Tin (remember MLX is Australia's largest Tin producer), also the massive value of the Wingellina Nickel Deposit (bigger than BHP's Ravensthorpe)