At 5 cents, the market is effectively placing no value on any of the company's respource propsects and pricing in a dramatic fall in the copper price for the Leichardt operation.
If copper price remains around current levels MRX is about as cheap as its ever going to be. Even with higher costs the company is generating significant cashflows now.
Today was a overeaction and there is little doubt the price will rise over the coming months (assuming copper remains high). Today was a combination of positive and negative news and the market focussed solely on the negative. Traders were forced to dump and tax loss selling accerated. No major holders were dumping.
It is still an extreme disappointment to see MRX obliterated over the past months. However, if you believe copper prices will remain high for 2 years then the MRX is the play.
MRX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
