I’m giving this another 6 months until Q2 results are out. If neither a capital return nor a significant tin price appreciation materializes, then the goose is cooked and MLX is a confirmed value trap. God knows what APAC wants with this. There is no clear exit for them either. Who’s going to buy this while being stuck with China JV partner?
For those that keep talking about keeping cash for future production, we have not been shown that this is a superior RISK adjusted deployment of capital. We simply do not know.l, while the value proposition of a buyback is known as of today. No debate.
If you think that a HK tycoon owned investment vehicle does anything but looking after its own interests, you haven’t been around long enough.
MLX Price at posting:
29.3¢ Sentiment: Buy Disclosure: Held
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