Well, I am a substantial holder of MLX long term,but am concerned there could be a market crash in the US soon. The US stock indices are way high, and the China economy is in all sorts of trouble.. Buffett has been cashing out. When the market in the US dives, and it must, the Oz market in general will follow in almost lockstep. All except things like gold. In the last slump a biggish holding in Westgold got from MLX saved the day. It went up well.
To my disappointment bailed Westgold right at the bottom, but did not buy back. I used the proceeds to buy a bunch of Gascoyne who had just discovered a new high grade gold reef right next to the plant. This went up way more proportionally than WGX, as they had the luck to strike a bonanza in the Never Never reef they still have not found the bottom of at almost 1 km that gets thicker and richer even with depth. I got lucky. I would like to own a lot more because when they start mining Never Never and processing it through the modern plant the cash will come pouring in. They are just too expensive for me now though I will not sell current holding come hell or high water.
Just a bit idly one morning, I thought I'd have a Captain Cook at TAM Gold because MLX had bought it,well, blow me down and shiver me timbers! (Who wooda thunk it?) /leverage Found out that TAM has a great deal in common with Spartan (new name for Gascoyne) especially million oz reserve in one pit at a high level of gold. The main difference it that TAM is selling at $0.035 while Spartan is selling at $0.65 last time I looked and good value at that. I think the upside potential for TAM is many times the good potential of SPR and I can afford to buy hundreds of thousands for 5% of the price of Spartan/Gascoyne, giving me hopefully much cheaper/higher gold insurance for a crash. Thing is, hardly anyone one seems to be even remotely aware of its existence. Wahoo! That could change quickly, starting if they start preparing the plant. I think Northern Star, a tier one producer, in Oz, the new JV partner, with 3 mega mines, is focusing on drilling TAM areas looking for a twin to the massive tier one Granites mine owned by US Newmont just down the road so to speak.
Think also that the market future for MLX tin is pretty sound and should survive a crash pretty well now, with high grades, no debt big cash holding, Rentails potential, and capital expenditure for setting up Area 5 and Leatherwood just about finished.. So thanks, APAC, for the hint?
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