Metals X - MLX

[cloggs]

This article in the Financial Review caught my eye, and there is no MLX thread so I thought I'd start one. I bought some after surfing their website. There are a number of research reports on there that are all positive.

"METALS X
Metals X is Australia’s largest tin producer – one of the few listed examples – and, thanks to recent savvy acquisitions, will significantly expand its gold production.

The ramp-up in precious metal mining, alongside a large undeveloped nickel and cobalt Wingellina project in Western Australia, means the company, which has a market cap of $265 million, promises to become a mid-cap diversified mining house over the coming few years, says Hartleys analyst Scott Williamson.

Metals X has operating gold mines at its Higginsvile and nearby South Kalgoorlie operations; it bought both from Alacer Gold in October for about $40 million out of cash reserves.

Management was able to recoup that initial investment in a mere six months as it lowered the average cost of production by focusing on higher quality deposits. More recently, the company spent $10 million acquiring the undeveloped Meekatharra Gold Operations, which included a fully refurbished gold plant.

“The market hasn’t realised how important this fall in the Australian dollar has been for the gold producers,” Williamson notes. “The Aussie gold producers are making some good money.”

The company produces tin from its Renison Bell underground mine in Tasmania, but Williamson says the Wingellina project is the “sleeping giant if we see nickel prices improve as forecast”.

Metals X in October announced its inaugural dividend, equivalent to a fully franked 2.715¢ per share after a four-for-one share consolidation that was completed early in December. At the current price of about 84¢, the shares yield 4.94 per cent. Company management declared plans to distribute at least 30 per cent of annual net profits to shareholders.

The company is sitting on about $100 million in cash with no debt. Its shares trade at six times forecasts earnings per share in this financial year. Global fund manager BlackRock holds 6 per cent of the company, mostly through its World Mining Fund, while a large Asian investment house, APAC Resources, holds 24 per cent. Both are long-term holders, Williamson says."

They are up to 95 cts now.

[Daytr]

Yeah kicking myself on this one I bailed far too early!
Great management team & Cooky is a gold guy & they will ramp up their gold production.
They also just had some great drill results recently at Rover 1.
I will get back in at some point but might wait for a pull back if we get one post Chinese NY.

[Joshuatree]

Looking at increasing from 150-400,000 oz year .

[Daytr]

They also have one of the biggest nickel deposits in the world, but probably needs a $20k/ton plus price.

[cloggs]

Share price went up a few cents which means a few percents. News today that the Aussie gold price went up to A$1500/oz. As a result they are receiving a 50% increase in a profit sharing arrangement with Southern Gold which was originally calculated at a price of A$1400.

[shasta]

Share price went up a few cents which means a few percents. News today that the Aussie gold price went up to A$1500/oz. As a result they are receiving a 50% increase in a profit sharing arrangement with Southern Gold which was originally calculated at a price of A$1400.

I'll scan through some old threads, i've picked MLX in the 2015 comp, as i did in 2014.

I'm sure i did some analysis on it back then.

[cloggs]

Very positive report out today regarding their development strategy of the Central Murchison Gold Project after MetalX's acquisition of the Meekathara Gold operation. The gold processing plant and infrastructure have changed the options. Mining to commence mid 2015. EBITDA over the initial plan $1.31billion.

[Daytr]

Cooky back where he belongs, growing a gold company.
The tin has just been a distraction.
Looking great.
I'm hoping for a pullback to get in!

[Daytr]

Picked up some of these puppies today.
Compared them to EVN & NST & I think they look like the best value with a MC of around $450M, no debt, A$120M in the bank, and production forecast to increase to 380-400k toz. Good costs in AUD & a little chopper from tin that I think will improve over time.
They have a n umber of other large assets in their stable particularly nickel, however the price is less than conducive at the moment.
Doing nicely today on a day when gold is down. The Aussie gold margin is quite spectacular.

[macduffy]

No debt but they do have a liability to Citi for a "gold prepay", originally $40m or so, which is repayable from gold production over a period of 2 years through to 2016. How much of this is outstanding?