Metminco Share Discussion Threads

[sannabay] 24/8/2016 13:04

[...]


We’ll be marketing William Howe of Metminco*† from 30 August till 1 September. Fresh from entering a formal investment agreement for equity funding of US$45m to go into the Los Calatos Copper Porphyry Project in Peru from CD Capital, the company can now focus on the recently-acquired Quinchia Gold Portfolio in Colombia and the updated underground mine plan for the Miraflores Gold Project.
An updated mine plan and schedule for the underground-only development of Miraflores in Colombia was published on 1 August. Mineable resources were estimated at 4.0Mt, grading 3.51 g/t Au and 2.84 g/t Ag, containing 455,000oz of gold and 368,000oz silver. The schedule was designed to deliver 1,300tpd/475,000tpa to the mill over a mine life of nine years, with steady-state gold production of approximately 50,000oz pa.
Happily, Jim Taylor and Imogen Whiteside have a new piece out on the company: Metminco — Revitalised by Acquisition and Farm-out, 23 August 2016. We think the value proposition presented by Metminco’s re-emergence as a gold development company, coupled with its ongoing copper exposure through the Los Calatos porphyry, is being overlooked by the market. Ongoing studies at Miraflores should optimise LoM economics, and the progression of permitting through 2017 should serve to advance the de-risking process. Meanwhile, the Los Calatos farm-out has removed the near-term pressure on the large-scale asset, which we believe has significant option value in a recovering copper price environment.
We maintain our SPECULATIVE BUY rating. We base our new speculative target price of A¢1.2 on a 0.25x risked multiple of Miraflores NPV8, allowing for the de-risking of the project’s parameters and it achieving permitting and funding milestones. We value Los Calatos at a 2x multiple of CD’s initial US$16m investment for 51% at the project level, again allowing for substantial uplift through the progression of the PFS/DFS process.

[sannabay] 21/8/2016 09:57

All sounds encouraging but the board needs to elaborate on the in specie distribution they're proposing. Think that will be key to the share price taking off or otherwise.

[geofferic1] 20/8/2016 19:45

As a result of putting my email up on LSE I have been contacted by a shareholder based in Austraila. He claims to be close to the board and is able to get some of these cryptic RNS's clarified. What do make of this he is saying we all have missed a crucial pointIThere is one very important thing that I noticed in the recent 4/8 announcement: ( that does not seem to be properly understood or appreciated by shareholders or the market )"A condition of the Agreement is that the Company will use its best endeavours to distribute at least 90% of its holding in Hampton Mining (the wholly owned subsidiary holding its interest in the Los Calatos Project) to its shareholders within six months of completion. The Company will in due course be calling a meeting of its shareholders to seek approval for the return of capital to effect the in specie distribution of its holding in Hampton Mining."If this occurs as stated it will involve an offer for return of capital ( payment to shareholders from Metminco ) for an assumed value of the remaining portion of LCH. I assume and have had indication that this would be based on the valuations already used to value CD capital input for their percentage ownership etc. ( USD$45M for 70% and therefore 30%=USD$19.285M), maybe even higher to entice shareholders to participate given that the transaction and funding is underway and also depending on how many parties are bidding for this equity slice. The timing of this may be as early as this calendar year. I believe that announcement of this provision alone will propel the share price beyond the price offer. It will allow existing shareholders to take a choice to be compensated to exit their ownership of LCM via MNC, possibly allow LCM to become a private/unlisted entity, and then shareholders in MNC would have remaining value in Columbian project after having been compensated for selling share in LCM.

[sannabay] 19/8/2016 16:41

Hope so, Count. We need RFC et al to make some noise - the market cap is just daft.

[the count of monte_cristo] 19/8/2016 15:56

Thanks SannaBay, I wonder if we will receive an update between now and the update on the gold projects....

[sannabay] 19/8/2016 15:21

RFC Ambrian on proactive yesterday:

Our roadshow schedule from the day after the August Bank Holiday till the end of September is packed. Below we quickly go over the companies we’ll be taking round London.
Week of 30 August — Metminco*†
William Howe, fresh from entering a formal investment agreement for equity funding of US$45m into the Los Calatos Copper Porphyry Project in Peru from CD Capital, is now able to turn his focus onto the recently-acquired Quinchia Gold Portfolio in Colombia and the updated underground mine plan for the Miraflores Gold Project. An updated mine plan and schedule for the underground-only development of Miraflores in Colombia was published on 1 August. Mineable resources were estimated at 4.0Mt, grading 3.51 g/t Au and 2.84 g/t Ag, containing 455,000oz of gold and 368,000oz silver. The schedule was designed to deliver 1,300tpd/475,000tpa to the mill over a mine life of nine years, with steady-state gold production of approximately 50,000oz pa.
Jim Taylor and Imogen Whiteside’s last report on the company can be seen here: Metminco — Agreement to Acquire the Quinchia Gold Portfolio, 7 March 2016.

[the count of monte_cristo] 19/8/2016 14:54

Nice to see a bit of buying today...

[the count of monte_cristo] 19/8/2016 12:20

...Geoff, sounds like it would make a good Western movie starring Lee Van Cleef, with an ennio Morriconi score:))

[chesycustard] 18/8/2016 14:59

Good summary count.5. Do a deal with that pesky landowner re Moll. Now the legal dispute is settled. Then maybe sell the asset lock stock.

[the count of monte_cristo] 18/8/2016 12:06

...one wonders whether some of the money from the goldies which have performed very well, SOLG/MARL now capped at around £70m, will begin to flow down to some of the other gold stocks. If you have a stock which has increased a few 100% and is capped at £70m the likelihood it will double again and the risk reward ratio would not perhaps seem as attractive as the bombed out stocks which have yet to move.

MNC need to sort the following;

1. Get a JV on at least one of the Gold projects sorted
2. Provide an update on how they intend to fund the development of the gold projects, if item one is sorted it will help answer this
3.Start drilling Tesorito
4. Get LC all done and move it forwards, get drilling TD2 and some of the other targets...

The commodities cycle looks to have come through the worst of it, the last 4 years have been extremely tough. I am sure a few other points can be added to the above list...

[geofferic1] 16/8/2016 15:53

Investor MeetingHi all, I'm trying to contact the 3rd person who attended the investor meeting in London recently. Didn't get your contact details sorry. Myself and Akhtar who took part would like to discuss some of the points raised at the meeting. If you could mail me at [e-mail] that would be great.

[chesycustard] 05/8/2016 15:01

It's mad to think we are so low. The market does not trust our BOD. Time for a very clear plan and time line from them I think, with the funding for mira spelled out.

[the count of monte_cristo] 05/8/2016 12:32

Market Caps - According to ADVFN:

MARL - £71.1m
SOLG - £60.8m
MNC - £5.6m

[the count of monte_cristo] 04/8/2016 12:56

My opinion, CD will be looking to promote and then sell the asset, to flip it on to maximise there investment within the shortest possible time frame. Personally, I think LC will be sold on to a major or Chinese entity within 18 months. CD are no fools and will want to make as much money from LC as quickly as possible.

I am excited about news flow with drilling the TD 2 & TD3 targets.

In regards the gold portfolio, lets get drilling Tesorito, this could be an extremely exciting project, perhaps even a company maker.

Dosquebradas, represents strike extension of the Batero Gold deposit which has a resource of 3Moz gold, a JV would seem logical.

...."As previously announced, Los Calatos was placed on care and maintenance as the Company sought a partner to fund progression of the Project. Once settlement occurs the initial focus at Los Calatos will be to upgrade the existing Mineral Resources to Measured and Indicated status, to expand the resources (including further drilling at the TD 2 and TD 3 targets), to complete Pre-Feasibility Study level metallurgical testwork including testing with sea water, and progress permitting".

...With funding secured and work streams defined for the Los Calatos Project, the Company is now focused on progressing its Quinchia Gold Portfolio in Colombia, including the completion of a Bankable Feasibility Study at the Miraflores Gold Project and drilling the adjoining mineralised target at Tesorito. This is an exciting time for the Company and we look forward to updating shareholders as we progress both projects and transition to becoming a gold producer."

[the count of monte_cristo] 01/8/2016 20:23

So on that basis, Miraflores could be valued at $29m.....455,000oz x $64 p/oz



"The average paid in 133 transactions in the three months to June was $64 an ounce of gold equivalent in the ground, up from $36 in the first quarter of 2016, as buyers factor in better long-term price expectations, according to Bloomberg Intelligence".

[chesycustard] 26/7/2016 21:12

It would definitely seem prudent to clarify when the first tranche hits the account, hopefully this week."It is anticipated that Los Calatos Mining Inc. will receive Tranche 1 equity funds in July 2016 following execution of the Equity Subscription Agreement and completion of the conditions precedent."

[the count of monte_cristo] 26/7/2016 20:41

Hello geofferic1, do you think it's worth following up on your email to as Steve Tainton how these two items are progressing?

[geofferic1] 26/7/2016 18:00

Got to admit this is getting very frustrating now, we need clarification on the L/C deal. The Colombian project financing plan needs to be aired. Nothing moves quick here, only the strong or the insane remain and to be honest one could lead to the other. GLA to all LTH who remain in hope.

[geofferic1] 26/7/2016 17:49

Seems we are in Limbo for time being. My Steve Tainton Email states more details on the CD Capital deal will be released once the deal has been transacted. Got to hope when the details are released we finally see the start of a recovery. No time scale on this but it is strangely quiet even by MNC standards.

[the count of monte_cristo] 26/7/2016 13:35

Chesy, lets see what the next update on Miraflores says...."SRK are currently completing a revised mine plan and schedule for the underground mining option which will be available shortly".

Have you seen the recent posts on HC in regards investors asking whether their will be a second announcement on LC? I believe you contacted the company recently and they said one is due?

Interesting read below, nothing we don't know already...

www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/25532/in-the-news-cardinal-resources-metminco-25532.html

[chesycustard] 22/7/2016 09:23

Count what was your take on the JORC, lower figures but higher grade cut off. Seems good but the market is still dubious.

[the count of monte_cristo] 17/7/2016 21:27

Copied from the KRS bb...

2016 has been exciting so far for gold investors. In the opinion of billionaire Eric Sprott, what is happening to gold and gold shares is stunning. The average gold stock is up 160% in less than 6 months, and Eric thinks gold will easily go to $2,000.

Gold, silver, and the mining shares have been the place to be ever since Eric was pushed into precious metals 16 years ago, in 2000, when gold was at $255. He was a hedge fund and equity fund manager who realized that the NASDAQ was going to crash. He wanted to protect his investors, so he got into gold stocks and opened up a hedge fund.

He has found that when most bull markets really get going, the returns are an average of 500%. In this gold bull market, $2000 gold is more like a 50% increase, so we should see it go that high at least, possibly much more!

Money deployed in the majors and mid-tiers is trickling down into the exploration companies where there has been a huge rally. One of his current strategies is to find near-development companies where a company has an interesting deposit and/or could be in production quickly. A recent example of an investment that Eric has made is called Latin American Minerals (TSX-V:LAT).

There is a concern about the negative correlation between gold stocks and general equities. Sprott thinks gold stocks will still be strong. This is because a failure- whether it is a bank, a government, COMEX, or a stock market breakdown would be incredibly positive for gold. Deflation is better for gold than inflation.

Sprott is hoping the central banks, and the commercial banks who are short on precious metals will lessen in power, so that gold and silver can do what they should have already done and go way up. The gains have been prevented many times due to market coercion by people with more power, money, and determination than the investors. Gold going over 2k in this ponzi-scheme environment is long overdue. We're going to have a long bull market.

Talking points from this week’s interview:

• Gold is way up in the last 6 months and will reach $2000
• Average bull markets have a 500% return average
• Exploration companies have much potential for huge returns
• Gold stocks will still perform in a financial crash
• Deflation is better for gold than inflation

Eric Sprott has more than 40 years of experience in the investment industry. After earning his designation as a chartered accountant, Eric entered the investment industry as a research analyst at Merrill Lynch. In 1981, he founded Sprott Securities (now called Cormark Securities Inc.), which today is one of Canada’s largest independently owned securities firms. In 2001, Eric established Sprott Asset Management Inc.

[the count of monte_cristo] 12/7/2016 12:08

Interesting...