Quarter‑cash‑flow performance
Melcor’s Q2 MD&A (ended 30 June 2025) shows that the company generated strong net cash inflows for the period, comfortably funding the $0.13‑per‑share quarterly dividend. Operating cash flow turned positive, reflecting the cash‑generating power of its core development and asset‑management activities after a modestly cash‑intensive first half of the year. The net cash flow increase—driven by higher project‑completion receipts and tighter working‑capital management—signifies that the firm is converting earnings into liquidity at a pace that exceeds its short‑term obligations.
Trading implications
A healthy operating cash flow swing to positive, coupled with a solid net cash balance, underpins a bullish short‑term outlook for MRD. The cash‑flow strength validates the dividend payout and suggests the company can sustain or even expand its shareholder‑return program without resorting to external financing. From a technical perspective, the positive cash‑flow narrative has already helped the stock hold above its recent 20‑day moving average, and the momentum is likely to attract momentum‑seeking traders.
Actionable insight: With cash‑flow fundamentals now in the green and dividend support confirmed, a long‑position or a buy‑on‑dip around current support levels (if the price retraces to the 20‑day MA) could be justified. Conversely, a breach below the 20‑day MA with accompanying volume could signal a short‑term correction, but the underlying cash‑flow health reduces the downside risk. Maintaining a stop just below the recent low (≈ $0.85) would protect against any unexpected liquidity‑drain events while allowing participation in the upside as cash‑flow‑driven fundamentals continue to price‑in.