Indeed. Just going over MLX past presentations, and the Renison project will have opcosts of $AU9000/t Sn.
Tin LME is pulling $US 16,350.00 and looking strong.
While 16350 ~ $18166 aussie, I'll discount this to $15000 to be conservative.
Renison will push 8500tpa thus generating
earnings p.a. = 8500 x 15000 = $AU 127.5million and
profit p.a. of 8500*6000= $AU 50 million.
more research to come shortly. I am trying to find Price/Earnings ratios for Tin miners, but with the top miners all being SE asian/chinese I am having difficulty sourcing appropriate reports.
Basically at a P/E ratio of 5 --> Renison should contribute 127*5 ~ 600m to MLX market cap (i.e. a share price target between 60 cents to $1 - its dependent on how much value in Renison has been factored into the SP).
Note: The P/E number of 5 is conjecture - until I get some solid P/E ratios for top tin producers for comparison purposes. If anyone wants to chip in that is appreciated.
MLX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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