Brendan, MLX was a different company in 2004. That was pre...

Brendan, MLX was a different company in 2004. That was pre Bluestone Tin merger so the share price back then is irrelevant.

I dont think a chart is needed to tell you that this stock is heading north. It is moving from a company losing millions a year to a company that is going to have revenues of close to $200m in the next 12 months. Just using its tin assets and royalty stream, NPAT will be somewhere around $100m next year, putting it on a P/E of about 5x. I have given a zero value to Wingellina and the rest of its assets.

Or looking at it the other way around and using Southern Cross Equities valuation for Wingellina at 29c per share, this means the market values the rest of the business at 13c per share. Renison in the next 12 months will earn roughly 8c per share from Renison and royalties and this figure will grown the following years as production at Renison increases. 13c valuation on an asset with a minimum mine life of 8 years and the potential for this mine life to be extended, you dont need to be a genius to see that this is just ludicrously cheap.

This is why the share price is set for a large rise. Once Renison gets underway, Im sure there will be a great deal of press on this mine, given its history etc. and the fact that MLX is the only tin producer in Australia and tin being a commodity that has gone up 400% in the last 3 years, world supply issues etc etc.

Brendan, LME was closed last night. I'll give you the closing Kuala Lumpur price when it comes out around lunch time.