A few red flags for me:

1) Operating costs well above feasibility studies.

2) Operating costs above AISC of mining operations.

3) Burning cash over the previous two quarters.

4) Mine ore grade is less than ore processed grade, implying future production output to fall in the near term, and costs per Tonne will rise.

5) Board continues to sit on a pile of cash - It appears they reckon they are good capital allocators, and would rather play with it than return to shareholders.

Key takeaways for the Tin producer's Q3 report (numbers for MLX's 50% share of Renison Tin Mine):

1. Tin sales: 1 396 Tonnes
2. Realised Tine Price: $54 310 AUD. ($59.6K AUD spot price as at March 31, 2022)
3. ASIC of $23 747 AUD.
4. Revenue: $71.1 M
5. Cashflow: $37.4 M
6. EBITDA: $49 M (EV/EBITDA = 2.8 on current EBITDA run rate)
7. Cash balance: $91.6 M

DISC - HELD

Yunnan Tin Industry Co, which mines and produces 74000 Tonnes of Tin annually (24% of global production), reported on April 18, that it has temporarily halted mining and production of tin to comply with Chinese local government COVID lockdown policies.

It has been unable to indicate when restrictions will be eased to enable production to re-commence.

Current TIn Spot and Futures:

Tin Spot Price: $43.3 k per tonne

3-month futures: $43.2 k per tonne

6-month futures: $42.85 k per Tonne

Slight backwardation indicates inventories of Tin are relatively low, with open warrants for 2490 Tonnes of zinc, however, levels remain well above the October trough of 255 Tonnes.

Metals X divested its Nickel interests last year, but retains a 20% holding in the recent IPO spin out, Nico Resources.

Nico resources holds the Wingelina deposit with approx. 2400 kTonnes of Nickel equiv. deposit. The deposit is shallow and very high grade (1.1%). and open at depth and strike.

Nico Resources plans to complete a preliminary feasibility study by the end of the financial year, and a Detailed Feasibility Study by the end of 2023.

CORRECTION: MLX Holds 21.1 M shares, and 25 M options @ a 20 cents strike price. At the current NC1 share price, MLX holding is valued at: 21100000 x $1.51+ 25000000 x (1.51-0.20) = $64.6 M. This is about 10% of MLX's market cap.

DISC - HELD.

An article from 2018 outlining the demand thesis for Tin (Sn)

DISC - HELD.