Metals Exploration Share Discussion Threads

[marmalade44] 19/6/2023 11:33

grimreaper2019 - Four years ago (March 31st 2019) the outstanding debt was $114.1m and not $137m as you state The company was in danger of defaulting on those loans.

The two major shareholders purchased the Senior debt in January 2020 (less than four years ago).

The outstanding debts were restructured in October 2020 (less than three years ago) with the Senior Facility ($72m) interest rate at 7% and the Mezzanine Facility ($65m) interest rate at 15%. The Mezzanine Facility interest rate will drop to 7% when the Senior Facility is repaid and the Mezzanine Facility is converted to a secured loan status. There is also zero possibility of MTL defaulting on the repayments.

Darren Bowden has been laser focused on repaying the Senior Facility debt so that the Mezzanine Facility interest rate drops to 7%.

The interest rate of 7% is not in dispute. When all the forms are completed by Q3 2023 then the interest rate will drop to 7%.

The larger major shareholder has indictated that they are willing to apply the 7% rate from the date that the Senior Facility was repaid (Q4 2022). The smaller major shareholder has not yet indicated if they are also willing to do this. The rate will drop to 7% when the process to transfer the debt from unsecured to secured has completed.

Your reason for the share price not appreciating is therefore based on a lie. The interest rate will drop to 7%.

The Board were trying to refinance the loans but were unable to so the major shareholders bought the Senior Facility loan. The 7% rate looks very competitive in the current high interest climate and there is also zero threat of default. Where else would the Board be able to get such a favourable outcome with zero dilution to existing shareholders?

Thank you for posting your factually incorrect nonsense. At least you got your name right.

[grimreaper2019] 19/6/2023 06:41

The only winners here are the debt holders, two multi millionaires in Candy and Edwards.

Four years ago they bought the bank debt of circa $70m for a fraction of that number, MTL's newly appointed CEO thought they would pass the heavily discounted debt number over to the company, not so.

What happened was they charged the company the full amount + penal 15% interest and one off charges.

Around 4 years ago MTL had $137m of debt, after 16 significant repayments and circa 300k ounces of gold produced the debt is down to $69m, still a significant number.

Now it appears the remaining debt interest which was supposed to drop to more reasonable level of 7% is now in dispute.

The above reason is why the share price will not appreciate, in effect the debt holders are raping the company financially.

Another company would have refinanced these penal terms but they are not allowed too, why, because the major shareholders will block it, who are the major shareholders, that's right Candy and Edwards, the debt holders.

[clivee1] 18/6/2023 19:46

Very detailed RNS on Monday ~ !!

[clivee1] 16/6/2023 22:55

Good evening all MTL LTH

I have only been investing in Metals Exploration since June 2022.

Now that very much debt has been reduced, a mega swing upwards hopefully will occur in the 5 working days.

Holder of 8 million shares at an average price of 1.45 pence.

Still a slow burner but with great middle term potential.

Only invest if you are NOT a day ~ week ~ month investor.

My target exit price is 9.5 pence.
VGLA

[the count of monte_cristo] 15/5/2023 11:19

Bargain hunters

[triskelion] 12/5/2023 12:28

@The Count of Monte_Cristo
Fantastical. Are you remarking on my post re: CEL?

[triskelion] 12/5/2023 12:27

@LeopoldAlcox
Genuine question. March 2023 quarterly update said positive FCF which I understand to mean net of interest etc. but no remarks I can see in it regarding working capital. So looked at SharePad for a comparison: it shows FCF 30/6/22 TTM as 35.6 yet working capital also 30/6/22 is shown as (3.0).
Is your point that the company is comfortably solvent balance sheet-wise so no worries? Doesn't negative working capital suggest scope for potential liquidity issues or does the favoured practice e.g of retailers say no? The good sign is the neg. w/c has been reducing over time and debt is down as I said.

[the count of monte_cristo] 11/5/2023 07:46

Folks love to post about "raisings" on bulletin boards. Read his posts, most of them are about the "fear" of raisings across the different stocks he is posting on.

[leopoldalcox] 11/5/2023 00:46

Why would they need to raise?Operations are throwing off cash and there is no fixed repayment schedule on the remaining debt.

[the count of monte_cristo] 10/5/2023 13:57

Gold price moving again, I want to see it blast past 2,100 USD an oz. All these gold producers and explorers are going to look like huge bargains 6, 12, 18 months down the line. Just that the general public have yet to even bother to consider them as an investment case:)

[triskelion] 09/5/2023 09:57

Negative working capital since 2014 but now also cash/equivalents as of 30/6/22 lowest since at least 2017 (but in fact March 2005), though fcf just reported as up and debt reduced a bit. Risk of a raise not eliminated?

[the count of monte_cristo] 05/5/2023 12:05

They just need to keep paying off the debt, bringing that cash in and hitting the production numbers....the share price will rerate.

[softmallow] 05/5/2023 11:35

I really can't believe this is still flatlined...gold gold gold. Wake up market !

[the count of monte_cristo] 04/5/2023 12:29

Indeed, just a matter of time. RSG has rerated strongly, expecting something similar here.

[mininglamp] 04/5/2023 07:54

This is a steal at current levels, I think the issue being it is below radar of most investors, the shares are tightly held and it is very hard to get stock at the best of times.

The target of 6p+ mentioned above looks optimistic by year end, but splitting hairs I would say 5p a share (or £100m m/cap) by year end is on.

In Q1/Q2 2024 the company will become a dividend payer.

[grimreaper2019] 04/5/2023 06:09

This looks a good bet, gold now $2040oz v their average $1887oz sold price in Q1 - on 22,000oz produced.

Every $100 oz move means an extra $2m hits the free cash flow - in Q1 it was $18m.

On that basis debt falls below £40m end Q2, by year end it could be under £10m.

Market cap now only £40m for a 82k oz a year producer ????

Share price will be 6p+ by year end.

BUY !

[apollocreed1] 03/5/2023 14:29

I bought these when they were about 35p. Wonder if I'll ever get my money back?!

[goldenshread] 03/5/2023 11:10

Still very hard to buy in any real size here, the stock looks a coiled spring poised to jump higher, my bet is once it starts to move it will be nigh impossible to acquire shares.

Every aspect this company is undervalued, by many multiples.

[one2go] 03/5/2023 05:45

This is a must have no brainer stock to buy if you want a gold producer in your portfolio, undervalued by the sum of at least £40m, which equates to 4p a share.

[harrytuesday] 02/5/2023 23:46

Eyes peeled. There might be some interesting asset news soon.

Just reward as an exemplar Philippines operator.

[softmallow] 02/5/2023 16:25

Upwards trend from now...too cheap.

[the count of monte_cristo] 02/5/2023 16:13

Peeps liquidating good stocks, like the goldies have been holding many of them down. As gold continues to shine investors will return across the sector. I mean look at some of these companies, HUM, MTL, SHG as producers they are extremely cheap...ORR has increased over 100% in a few weeks as an explorer, MILA is capped at 4m with a probable big company looking over them, CORA are capped at just 10m GBP. The list goes on:)

[broken_arrow1] 02/5/2023 16:03

Real offer moving up behind the scenes - not much stock left below 2.1p

[mrmcnee] 02/5/2023 15:59

Gold price up $23oz helps the cause but debt down, production up and free cash bulging the coffers is a recipe for a major uplift in the share price here.

What other 80,000pa gold producer is valued at only £40m on LSE ??

No brainer buy IMO.