Can anyone explain why MRE is languishing around $2.20 when JBM (even after its post-dividend slump) is valued at $4.22 per share? This morning MRE promised a special 20 cps divvy - subject to shareholder and ASIC approval - so even JBM's competitive advantage on that score has effectively been nullified.
I know the history of the old Anaconda and the costs involved in getting a poorly built plant up to scratch; I'm just surprised that the market still seems to nurse a grudge given the excellent turnaround represented by today's figures. The company is awash with cash and facing a nickel environment that remains bullish for the next 18 months at least. In addition, MRE owns one of the few truly world-class nickel resources with a very long mine life.
Is it just residual negative sentiment or does something else dog this company? Is it expectations that a rising A$ will undermine profits going forward? Or a slump in Chinese demand for stainless steel? Any thoughts?
I hold.
Gupper
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Can anyone explain why MRE is languishing around $2.20 when JBM...
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