greggles
I'll be back!
- Joined
- 28 July 2004
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Thanks Ann for undertaking the analysis on MLX. So in this instance chart and technical are basically saying the same thing - MLX is having far more worry. It is only 11 AM in Sydney and MLX transaction volume has surpassed yesterday's full transaction volume.Miner, this one may have a bit of a battle on its hands. Looking at the six months daily chart I can see the Twiggs Money Flow Indicator is in very negative territory, it has a falling overhead resistance line, it is under the 21dsma as well as the 200dsma.
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Then when I look at the EqiVolume chart I can see a huge amount of selling pressure and a gap it needs to rise above. There are large blocks of selling pressure pretty much all the way up to 50c
Sorry I can't see anything more positive but just calling the charts as I see them.
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One thing however on your comment - selling pressure all the way upto 50 cents considering today's price is only 28.5 cents.
Nifty is the key bottleneck. As cost cutting is under active implementation by 30 June MLX is ready to ripe for a possible take over imo. Copper is hot. Who knows. Speculative thought with an understanding the technical strengths. Disclosure I am a holder so DYOR.It could finally be turnaround time for MLX following the release of their Quarterly Activities Report.
$74.3 million cash in the bank, record production of 2,061 tonnes of tin, EBITDA of $12.9 million and net cash flow of $10.1 million (previous quarter $8.1 million and $5.2 million respectively).
The market had taken a fairly dim view of MLX's future prospects over the last 12 months but today's report may have had an impact on sentiment. The coming days and weeks will determine whether Metals X can break its year long downtrend.
MLX up 17.78% to 26.5c so far today.
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Ironically MLX repeating the story after one year again . Is it a cyclic ?/After an ugly few months Metals X appears to have bottomed out at 70c and is rebounding now on good volume after the release of its Quarterly Activities Report on Tuesday. It gapped up today and finished near its high, so the bulls are clearly back in charge.
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Thanks for this info Miner, I've been keeping an eye on this stock too, it's been stock I've held in the past and one that I have liked within the plethora of mining stocks.Nifty mines traditionally have very poor maintenance regime, an unacceptable condition of equipment and questionable maintenance strategies as I learnt from many sources since Birla Nifty era.
To turnaround that condition by new management requires a good amount of capital investment and ironically shutdown as well. Watch MLX
@aus_trader ! Market will probably adjust yesterday's gain too. Gave good opportunities for traders as well as some hope and relief for long term . holders. However demonstrated sustainability for the copper plant is the key challenge. With plant condition they need massive cash injection on plant replacement. Otherwise do incremental changes, get market excited and with rising copper some one bails them out by buying Nifty. I will watch today and tomorrow.Thanks for this info Miner, I've been keeping an eye on this stock too, it's been stock I've held in the past and one that I have liked within the plethora of mining stocks.
I guess they must have miscalculated when buying Nifty. But since Tin business is profitable (It's been profitable for decades as I have been following the stock), could they just admit to the mistake and get rid of Nifty by any chance or do they have too much pride to admit ?
If the company just had the profitable Tin business and the 74m cash on hand I'll buy it back straight away given it won't be draining it's cash on Nifty Quarter after Quarter.
Am I simplifying this too much (I like simplicity, I don't like headaches), your thoughts would be appreciated, Miner.
Thanks Miner, your hands on mining background is good to have when looking deeper into mining stocks.@aus_trader ! Market will probably adjust yesterday's gain too. Gave good opportunities for traders as well as some hope and relief for long term . holders. However demonstrated sustainability for the copper plant is the key challenge. With plant condition they need massive cash injection on plant replacement. Otherwise do incremental changes, get market excited and with rising copper some one bails them out by buying Nifty. I will watch today and tomorrow.
You were right on apparent cheap buy of Nifty without analyzing the asset conditions. Excellent ore body with poor plant availability does not equate to good return.
I have to dig more now my faith is returning too.
Hmm!Good morning all
Hopefully, this reset plan will be well received in the short and long term.
https://www.asx.com.au/asxpdf/20190501/pdf/444qx3wp4sklg0.pdf
Some of the brokers reckon this stock is undervalued but then again it's the overall market participants that drive the stock price...Hmm!
Market did not like the reset plan today. Interesting however
ThanksSome of the brokers reckon this stock is undervalued but then again it's the overall market participants that drive the stock price...
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@brty and @gregglesI started to watch this a while back when there was a fair bit of director buying but there is no reason to buy yet.
With both tin and copper down heavily I would expect this to make new multi year lows in the coming days.
It almost seems that whatever can go wrong here has gone wrong.
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