Agreed. Even though there was almost a 30% drop in Nifty u/ground reserves, there's still many years left in the project due to the size and grade of the entire resource. MLX, with decent cash flows soon to come from its gold operations, can afford to mine the current reserve whilst spending cash on proving up the resource, even in the midst of a falling copper price. ABY on the other hand has a large but fixed amount of cash and no likelihood of generating a decent cash flow under that same scenario - especially given the way they've been operating.
So from a risk viewpoint, I think both parties have done the right thing. And accepting shares in MLX may well prove the ABY board to be savvier than the market has been giving them credit for!
[ABY only]
MLX Price at posting:
$1.14 Sentiment: None Disclosure: Not Held
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