As you do around the start of a new year, I had a look over my...

As you do around the start of a new year, I had a look over my share portfolio and when looking at MLX I compared today’s position with the last stated coy ann of 26 Nov.

The coy anns are in <...>



That’s good but hardly life sustaining.

targeted operating costs is taking longer than the targeted timeframe.>

That’s good we have a cash flow but we are been warned that production is lower and costs are higher. My “feeling” is that we are been set up for some future bad news here...maybe they are experiencing some of the problems of the previous Renison mine incumbents...hope I am wrong.



Unfortunately the updated prices as at 2 Jan 2009 are worse with the tin cash price in AUD terms been around $14,850 and not the higher numbers as discussed above.

< The construction of the copper circuit has been completed but, as was highlighted in the quarterly report, the current low copper price has consumed the expected profit margin from planned copper production. The Company has elected not to commission and operate this circuit. Accordingly the co-product revenue from copper production will not materialise until copper prices recover.>

This has continued to deteriorate. When this was released, copper was around $1.90USD a pound...the price now is $1.42USD. Definitely no copper offset revenue.



That’s some relief...but the metal prices have deteriorated since the 26 Nov ann.

Other issues:

Rentails...it’s dead in the water in this market and continues to be whilst the metal prices worsen. So too is Wingellina despite all its promise.

Plus the royalty stream will continue to be at the low end of their announcement as the price of nickel isn’t recovering.

Conclusion:

MLX is better positioned for survival than most because we’re producing. But it is “SURVIVE” rather than “THRIVE”.

We’ve just got to hang in there and wait for the good times when we can extract all that potential.