Why will Metals X (ASX:MLX) stock price explode this week?
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the X Metals Limited (ASX:MLX) The stock price has been on fire since Monday morning, posting a 15% gain.
At yesterday’s market close, shares of the mining company finished up 10.71% at 62 cents. Although no market-sensitive announcements were made on the ASX this week, the company’s share price hit a multi-year high of 65.5 cents.
Let’s take a look at what might be driving investors to buy Metal X stocks lately.
X Metals stocks resume their bullish trajectory
The Australian base metals company continued to advance this week on positive investor sentiment.
Late last month, Metals X released its quarterly business report for the period ending December 31, 2021.
According to the update, the company reported 2,359 tonnes of tin concentrate production from the Renison tin operation. Although less than the 2,471 tonnes realized in the prior quarter, this was due to a planned major processing plant shutdown.
Regardless of the setback, Metals X said it maintained high tin production due to high mining and mill grades. For the December quarter, it was the third highest on record, with ore mined of 186,298 tonnes at a grade of 1.58%.
Tin sold in the three months was 2,175 tons at an all-in sustaining cost (AISC) of $21,869 per ton. By comparison, the quarter ending September saw 2,381 tonnes of tin sold with an AISC of $21,088 per tonne.
Imputed earnings before interest, taxes, depreciation and amortization (EBITDA) was $77.6 million, up 10.3% from the prior quarter.
Additionally, imputed net cash flow was $60.9 million, an increase of 12.7% from Q3 2021.
Metals X owns a 50% stake in Renison through its 50% stake in the Bluestone Mines Tasmania joint venture. It should be noted that all figures above are related to Renison’s total production.
Looking ahead, the company noted that the outlook for the tin market remains strong and is expected to continue into 2022.
Metals X reported a closing cash balance of $46.2 million, compared to $21.6 million in the prior comparable period. This primarily stems from the sale and spin-off of its portfolio of nickel assets, including the Wingellina Nickel-Cobalt Project and the Claude Hills Project.
Over the past 12 months, Metals X stock price has climbed over 260% for investors.
In 2022, its shares experienced a slight hiccup following a broader market selloff before bouncing back, up almost 8% so far.
Based on valuation bases, Metals X commands a market capitalization of approximately $562.5 million, with approximately 907.27 million shares outstanding.