Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
MLX continues to run hard. is this run up due to tin price increases or due to the performance of company? SPL has a good run as well. is this company has the potential to grow like Telix pharmaceuticals ? Thanks James for your insight.
Hi John,
Metals X Ltd (ASX: MLX) – This $1.9bn primarily tin miner has more than doubled YTD, outperforming many of the better-known ASX mining names. The stocks strong performance in 2026 has been largely earnings-driven. While the ASX 200 Materials sector is up around 17% YTD, MLX has materially outperformed as consensus earnings expectations have been repeatedly revised higher, with the stock continuing to advance even as the broader resources sector softened over the past month.
Interestingly, MLX’s forward P/E has actually compressed from ~13.2x to ~8.3x, having fallen as low as 5.5x in July. The fundamental driver has been MLX’s 50% interest in Tasmania’s Renison Tin Operation, making the company primarily a play on the base metal tin. Hence, strong tin prices on higher production has improved earnings materially which has underpinned the stock price.
The company’s increasingly strong balance sheet and capacity to fund growth or additional investments have provided further support. After such a strong run the risk/reward is naturally less compelling than it was earlier in the year, but at ~8x forward earnings the market is still not applying an aggressive multiple – we like MLX around $2.
Starpharma Holdings (ASX: SPL) – we were asked a question on SPL last month with the answer here. Its a huge ask for SPL to grow from $380mn to the $5.1bn market cap of Telix (TLX) despite more than doubling in the last year.
SPL and TLX are at very different stages of maturity. SPL is a pre-profitability platform company trading on a speculative valuation, while TLX is a scaled, profitable radiopharmaceutical commercial business now taking on significant leverage to vertically integrate its supply chain via the ITM deal.
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