This company looks OK but the announcement today did nothing....

This company looks OK but the announcement today did nothing.

There is a broker report on the MRX website, which estimates cash costs of US$1.60lb (which is quite high).

Currently aiming for 9K tonne per annum, which at $3lb equals $30M EBITDA or 4.3 cents EPS EBITDA.

$25,518,189 is tax losses therefore will not pay tax for 3 years.

However, if we theorise tax, NPAT = $20M or 2.8 cents EPS.

If copper falls to $2.50lb then NPAT EPS = 1.8 cents.

On a PE ratio of 10, $2.50lb copper is an 18 cent share price target when being very conservative.

Which is why this is a dog stock and the market is too smart to be fooled, no matter how much are dear old mother hen says how good it is.