MLL 3.19% 9.7¢ mali lithium limited

MLL Gold (Right place right time)

  1. 1,944 Posts.
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    So the Company has been vocal about its refocus on gold and has had interest in its tenements.

    We do know that the Morilla plant is idle and in part, still ready for production.

    Im not sure of the rehab obligations outstanding at the mine, but a possible scenario im thinking is:

    MLL pick up a 40/40/20 JV share of the plant, in line with the current structure owned by Barrick and the Govt etc, but in doing so, we our payment will be the pick up the outstanding rehab obligations. Who the other party might be? Could be RSG (local and near by), could be something to do with our drillers who are our number 2 or shareholder, and willing to take shares in lieu of fees....

    Now, we all know Koting has several soil anomalies, one that is partly drilled and have the following intercepts:
    Currently we are sitting on the following gold hits just at Koting alone:

    4m @ 11 gpt
    42m @ 1.22 gpt
    27m @ 1.55 gpt
    12m @ 5.79 gpt
    51m @ 1.17 gpt
    5m @ 4.88 gpt
    12m @ 8.9 gpt

    So whilst Koting has a mineralised system present and there certainly are ounces there (I believe its a 500m strike)?, lets not forget that if on the above scenario, we pick up the rehab obligations, we also will get access to Ntiola and Viper deposits, which had stopped mining when gold was $1200 USD...

    Ive been in MLL a while, I believe Ntiola had a resource of about 400k oz, yet only about 80koz were mined, and about 40k from Viper? ….

    With gold ripping again tonight and sitting at $1750USD, and going to $1900 USD, there are a lot of additional ounces spare 10-20km from the plant at Ntiola and Viper that would be economic, and that have just had recent studies on them as they were mined, so the turnaround time to production would be minimal.

    As a guess, Koting, Ntiola and Viper could have 200koz of near term gold ready for production...

    Morilla is too problematic for the beast that is Barrick, but for a small company like us, (and yes some assumptions here, but its a forum sooo) 200k oz x $400 cash margin ($1750 sales - $1350 cost)  =$80m USD profit.

    $80m USD profit x 40% = $32m USD

    $32m USD / 0.64FX = $50m AUD profit...

    Again, yes, assumptions, but think about what that would do to the share price...

    Under the above scenario, the share price would need to factor in:
    - $50m AUD profit split over say 2 years
    - a PE multiple to allow for above profit to generate more gold targets from our many prospects down the road
    - Our lithium project having a greater chance of success to market as our MC could be used in part for funding
    - Severely catching up our MC to other lithium peers because on every other metric we are so far behind so the valuation increase potential is massive
    - The fact that MLL is a gold producer in a hot market and the money loves hot areas
    - Reduction in sovereign risk due to producer status.

    Just my thoughts.

    But MLL is awakening... gold is hot, there is a gold plant idle, we have (join) dot (join) dot (join)

    oh and our lithium project aint bad too haha (such a good kicker).


    Last edited by boy1: 16/05/20
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Mkt cap ! $30.78M
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