You also need to add the royalties income stream and also the revenue from the Collingwood tin mine. I have forecasts for '09 of around $200m EBITDA using $15,000 price for tin. This is conservative given Indonesian suppliers who produce around 40% of world tin have clearly stated that they will not supply tin on the world market at prices below this. Stock is capped at just over $400m and lets not forget they own the 16th largest known nickel deposit in the world with an estimated NPV of $5b, this stock still is ridiculously cheap. There are still risks that remain with getting both sites to production but I dont see any major problems arising down at Renison. The stock is starting to come onto the radar of brokers and the like so the market will become much more efficient in pricing this one.
MLX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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