Hi Nabaru01. Yeah I understand what you're saying on double...

Hi Nabaru01. Yeah I understand what you're saying on double accounting. Illustrative mainly to see what the cash flow implications are.

Effectively you're buying a gold operation that, if Q3 is typical, adds about $10-11m cash p.a. from a tin mine that will have up/downside based on that, uncorrelated, commodity price.

The company has an EV of $213m (+ $93m cash and working capital ignoring the pre-sold oz*). This, IMO is attractive enough. Some of the value will depend on what management do with that cash horde.

[* ignore the presold oz as this is both an asset $40m and a liability to deliver 30k oz]

From reading the management reports it certainly seems like they are focused on their gold operations more so than either tin or nickel for company growth presently.

I would guess that MLX would like to see tin much higher before committing to Rentails and again I think the Nickel market is too fickle to justify a $2.5B commitment from anyone - if the politics change in Indonesia the nickel price could plummet - likewise, even if Indonesia retains the export ban on ore the anticipated supply shortfall is only temporary until Indonesia gets smelting capacity developed then the supply shortfall (projected) will be gone.

Cheers
John