Metals Exploration Share Discussion Threads

[rupert1] 08/9/2016 17:47

Cyberbub,

I can see you are new to this stock, and your timing could be perfect; less than 3 weeks from the first sale of dore. As Lord Badger has intimated we are expecting an upgrade in the next RNS which will be before the end of the month. The majority of holders here have been in for many years and have ridden the rollercoaster. If you can build a stake now, you will have done so without the heartache! Best of luck.
Rupert

[cyberbub] 08/9/2016 15:05

Very helpful thanks Lord Badger.I see that the Candy brothers are involved via one of their wives. An interesting departure from property development LOLWhat's the tax position? I suppose they can offset development costs for a few years, but what's the underlying position re tax rates etc?100k Oz at a pre-tax profit of say $650 is around £50M p.a., on a multiple of say 8 to reflect political risk that's £400M cap. Current market cap is around £150M.

[cyberbub] 08/9/2016 12:45

What is the target annual production and the target AISC here, please?

[wiseacre] 08/9/2016 11:15

Yes but hardly material. With near term potential of throwing off cash of £50 million a year we should be off to the races.

[giantpeach2] 08/9/2016 09:58

Cash raised then but more dilution.

[giantpeach2] 05/9/2016 12:46

Yes but is funding finished with yet, sounded pretty desperate when they said need funds NOW!!

[wiseacre] 30/8/2016 13:04

I gather that on the ground it is going brilliantly but politics in the Philippines is a nightmare for foreign investment and the banks have been less than helpful. However I believe this share will come good and the current hiatus presents a perfect opportunity to load up.

[achillesheel] 30/8/2016 11:59

ill take some more, should be double current share price by Christmas

[giantpeach2] 26/8/2016 13:09

yes not good here, surprised it bounced back.

[wiseacre] 26/8/2016 13:06

Feel badly misled. Apologies to all

[laptop15] 25/8/2016 21:27

Better be good for until Christmas.... Lol...full production should be well under way by then :))Hopefully they have built some good storm/flood protection around the mine.

[laptop15] 25/8/2016 21:23

Weather forecast Philippines

[ssadim] 25/8/2016 15:33

June, July, August and September are generaly regarded as the typoon season, although they can come at almost any time. Northern Luzon is the most impacted area. Fingers firmly crossed.

[laptop15] 25/8/2016 14:54

Good to know wiseacre....hopefully we get a rise in the share price and some good production ramp up news soon!! Anyone got any price targets here? Just hope we don't get any hurricanes in the Philippines soon either....lol

[wiseacre] 25/8/2016 13:22

Should have publication of a banking agreement very shortly when the FD is back from holiday. Am told the paperwork has been prepared. I believe this is the cheapest gold stock in the firmament despite political problems in the Philippines.

[lord badger] 15/8/2016 13:08

Hol, I spoke to Ian or Liam about this at the AGM. There is an issue with the number of open offers a company can run within a 12 month period - some EU regulation. We had one last October. Aside from this it is so much cheaper and quicker raising money direct via the main shareholders. I share your frustration at not being able to pick up what is now two tranches of shares at a considerable discount to market price, but I guess that is the lot of us, the retail investors.

[holism] 15/8/2016 12:41

laptop we need a trouble free period at the mine. I was miffed that weren't offered shares at 5p.

[laptop15] 10/8/2016 09:30

All quiet here guys....hopefully some good news soon on production!!

[laptop15] 02/8/2016 20:11

Thanks Holism :)

[holism] 02/8/2016 07:51

i think they are in production laptop, but ramp up will take three months or so.

[laptop15] 30/7/2016 12:27

Bought in here yesterday guys :) when do we expect production to start?

[holism] 28/7/2016 08:31

Indeed it is looking good. If they can get production up to levels we have been told are possible any debt finance will be paid off very quickly and dare I say it we could have dividends within 12 months.

[lord badger] 26/7/2016 10:25

Laptop, I'm glad it's followed on relatively quickly after the last RNS. Spookily, I had 5p in my calculations and the issuance of an additional 76.9m shares. If this placing had happened a few months ago the dilution could have been far larger. Bear in mind that they had the authority to issue an additional 176m shares.

Interestingly, one of the downsides of MTL from a retail investor perspective, that being a very small free float and a huge number of shares in the hands of a small number of shareholders, has in this instance actually worked in our favour. It's given the company the ability to raise additional funds rapidly without having to resort to an open offer, the number of which can be carried out in a 12 month period is, I believe, limited by EU law - one per year and we had one last October.

If commissioning and ramp up goes smoothly then this will be the last cash call. As to the debt, compared to quite a few other miners, the debt pile is relatively modest - $83m against a cap ex of $204m. With PoG at levels far higher than anticipated in the company's projections and with a higher anticipated yield from the ore of between 10% and 40% - although the 40% figure is from Share Prophets so handle with care - the cost of fundraising, additional interest payments, etc. should be well covered. The debt repayment schedule was based on 100,00oz per year at $1,000 per oz. Working with a modest yield uplift of 10%, we're looking at 110,000oz at $1,325 per oz (the hedge, so one-third of production, last advised at $1,287 per oz).

Bear in mind that the company receives 90% of the value of the dore once it's loaded on the plane in the Philippines, so cash should flow in fairly quickly. And they will be extracting increasing percentages of gold from low ore grades throughout the commissioning period as the CIL and Biox extraction circuits gear up - gravity appears fully functional. At the AGM Ian Holzberger stated that the Biox circuit would be fully up to speed 3 months hence; that's three months from the 24th June, so end of September. I may be wrong but the bulking up of the Biox bacteria can continue without ROM ore passing through it, so the issue with the mill would not have held it up. I expect the 3 months to ramp up to design specifications i.e. full production, mentioned in yesterday's RNS is giving him a little wiggle room.

Now the fundraising has been completed the debt restructuring should fall into place - the latter, I believe, was contingent on the former. Anyone who has followed this share for long enough will know that statements like "it's plain sailing from here on in" never come to pass, so all I will say is it's looking good, but don't bet the house on it!

[laptop15] 25/7/2016 23:34

What do you guys think of todays RNS?? Is this enough or are they going to need another placing on top i wonder? Will the share price drop a bit after this new dilution over the next few days? Is the debt going to be an ongoing issue here for years?