This is a deep value asset play now and IMO the poor performance on nifty is discounted in the price. I think it will be a case of ‘sell the rumour, but the fact’. Such a scant statement as the recent one creates fear and uncertainty, perfect for those wanting to profit from a downside move. However, the balance sheet is not weak, they have one leg of the business generating material cash and they have options to realise value over the long term (including C&m for nifty pursuant to improvements in copper pricing and/or mining process).
Enterprise value well under $100m, notwithstanding some cash burn to be revealed, is ridiculous for a healthy tin operation, prospective tenements and copper operation infrastructure of 100m plus. I think at least half this fall will be retraced when on the fact (announcement), meaning a very rapid return to 16.5-17c. Try and finesse for a half cent or so but run the risk of missing out IMO.
MLX Price at posting:
12.8¢ Sentiment: Buy Disclosure: Held
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