Metals Exploration Share Discussion Threads

[jailbird] 31/1/2017 16:29

Davegk,

CEY

No debt

Full year 2016 production is expected towards the upper end of guidance of between 520,000 and 540,000 ounces. Full year 2016 costs are expected towards the lower end of guidance of between US$530 and US$550 per ounce cash cost of production and between US$720 to US$750 per ounce AISC.
Centamin remains debt-free and un-hedged with cash, bullion on hand, gold sales receivable and available-for-sale financial assets of US$416.9 million at 30 September 2016, up US$84.7 million over the quarter.

[giantpeach2] 31/1/2017 16:20

The amount of buys today and at full ask now, how has this not jumped up.
I have seen this down 10% or more on a grands worth of sells before now.

[peterpowell21] 31/1/2017 14:36

looking back over the years this is the most interest this company has ever had.
this is getting onto peoples radar now.
can only build from here. just waiting for that one RNS to drop,giving the news they have been talking about for years and then BOOOOOOOOOOOOOOOM.
We must be so close to full production now.

[jailbird] 31/1/2017 13:24

level 2 strong now...4 v 1

[jailbird] 31/1/2017 13:21

davegk,

thanks, that is good info..CEY is good comparison Co...do you know whether CEY has any debt ?

[davegk] 31/1/2017 13:02

Jailbird, I think the reason why MTL, with a market cap of £106m, is so cheap is its low production cost of under $700 per ounce. With gold at $1200 per ounce and 110,000 ounces per year we are “making” $55m or £44m per year compared with the market cap of £106m. Admittedly we have to service our debt for the next few years but remember the stock market is a forward looking in its valuation and I expect us to produce comfortably more than 110,000 ounces.

OMI are producing 57,000 ounces of gold annually with am all in sustaining cost of $1135 per ounce, so they are making $3.7m or £2.9m per year.

CEY in 2016 are producing 530,000 ounces of gold with an AICS of $735, so they have a similar cost to MTL and are producing just under five times as much. Their market cap is £1750m. A fifth of 1750 is 350!

[jailbird] 31/1/2017 12:56

PP,

just high mkt cap was bothering me...nothing else really...mkt cap valuations are my guide on value....but it is not always straight forward.

[peterpowell21] 31/1/2017 12:47

jailbird
well i would say it goes without saying that production is important.
but if it costs you more to get it out the ground than you get for it, thats not good.
all three companies you compared did not make a profit.
MTL look like there is a good profit margin here. but until we see the numbers we can only go by what we are told.
you seem to have doubts here?

[jailbird] 31/1/2017 12:16

tell a lie 1MM on the bid moved up

[jailbird] 31/1/2017 12:15

Level 2 still unchanged

[giantpeach2] 31/1/2017 12:12

Full ask alomost paid, not long til me move now!

[jailbird] 31/1/2017 12:04

Well if you look at Nav .. i would disagree I am more interested in the amount of gold being produced yearly and gold sales and also how much cash flow is generated to compare really Mkt cap is not justified until I see figures .. I could be wrong of course

[peterpowell21] 31/1/2017 11:49

jailbird.
i have just looked at those 3 companies.
none made a profit on the 2014 results that i looked at.
they have revenue but no profit.
HOC have a M/C of 1,181m.

i also like to look at the net asset value of a company.
HOC has a share price of 236p and a NAV of $1.27
omi share price 16.8p NAV $0.17
HAZ share price 20.5p nav $0.58

mtl share price 5.125P NAV 5.73p

i dont know what you look at when valuing a company but i would say MTL are very cheap.

[jailbird] 31/1/2017 11:41

I am invested, but am allowed to change my mind if fundamentals do not look right There is a disparity I agree.

[achillesheel] 31/1/2017 10:56

You only have to look at AAZ and OMI quarterly results RNS's to see the disparity here, operating costs and recovery rates, mine lifecycle etc. Everything you require to research can be found in the RNS's on the website and previous discussion on this forum, sounds like you are looking for someone to justify you investing here when it should be your decision after analysing the facts

[jailbird] 31/1/2017 09:15

Been looking at the market cap here.. I do not get it to be honest Why would this be worth more than 5p... anyone ?Compare these to other miners AAZ , or OMI are small miners like MTLor HOC ( big producer )MTL is 100m mkt cap , 4 times more I trying to understanding the justification of the mktcap in comparison ... grades , sales , cost of production ?

[jailbird] 30/1/2017 21:57

I actually like to use the $695 figure as explained below since this is all in costs - definition of costs differ according to terminology Cash Cost: the cost of production at the mine site, not including head office costs, interest expense, capitalized development or stripping, off-site costs (like smelting or refining costs), taxes or depreciationTotal Cash Costs: Cash Costs plus off-site costs, head office costs, and sometimes interestTotal Costs: Total Cash Costs plus depreciation, interest, and reported taxes (not necessarily paid)All-in Cash Costs: Cash Costs plus exploration expense, head office costs, and sustaining capital

[jailbird] 30/1/2017 21:53

It gets better now since gold is near $1200This is from their websiteIn May 2010 the Company announced the results of the Runruno project Feasibility Study which confirmed the viability of the project, projecting average production of 96,700oz of gold per annum over a mine life of 10.4 years, at an average forecast operating cost $477/oz gold before any molybdenum credits. The capital cost is forecast to be US$149.3 million, with payback within 3.5 years at US$1,000/oz gold. The Runruno project will be an open pit operation, and will use the proven BIOX® and carbon in leach processes to recover gold and molybdenum.

[jailbird] 30/1/2017 21:52

Just saw the above post You answered my question thanks

[jailbird] 30/1/2017 21:44

May have already been posted but I just read $460/ounce production costs.. is that correct ?

[davegk] 30/1/2017 21:16

Thanks for posting the insider tip/report jailbird.

Interesting then we have had two tips published in January.

I subscribe to money week so here’s what they said in the magazine published 27th January.
It was a major three-page article entitled ”The 13 investments are experts would snap up now”

The money week editor had a roundtable discussion with five investment professionals (not journalists)
Under the title was a picture of a very large opencast mine with the caption “some of the gold miners are looking fantastic”.

The article started with a general discussion about inflation, Brexit, geopolitical risks, gold etc.
13 shares from all sectors were tipped, not a lot was said about each.
Here is what Bob Catto of Hobart capital markets said about MTl.
“There is a gold miner in the Philippines I like, MTL. The market cap Is £101m, the debt is $72 million, and it will produce 110,000 ounces per year at an all in cost of around $695 per ounce. It is very cheap indeed, and there is room for growing the asset-it’s got a 10 year mining life as it stands.”

[lord badger] 30/1/2017 19:23

Thanks JB. Hopefully todaywelive might be able to give us the full text of the Money Week comment.

[giantpeach2] 30/1/2017 19:02

Thanks for that jailbird.

[jailbird] 30/1/2017 18:11

this is insider tip/report


Insider: One bargain and a tempting sell




By Lee Wild | Fri, 13th January 2017 - 12:59

Metals Exploration bets on gold

Want to know where industry men think gold prices are going? Well, non-executive director Jeremy Ayre gave us a clue when he coughed up £250,000 for 5 million shares in AIM-listed Metals Exploration (MTL) at 5p each.

Metals announced first gold sales at its Runruno project in the Philippines in November, a major milestone in the Project's development. "Mining and processing operations are ramping up soundly," we were told.

Mining industry veteran Ayre now owns 7 million shares, and will be happy to see the gold price up 7% since before Christmas. It hit a seven-week high Thursday near $1,207 an ounce.

[jailbird] 30/1/2017 18:07

From another board, iii,
It said that it was cheap extraction , proven reserves and already producing with a min life of 10 years.