Metanor Resources MEAOD

Cheapest CDN Producer

[taylor1988]

Sprott has stated they are accumulating advanced explorers and near-term producers trading at 2 times 2 yrs. out earnings. I wonder what they'd think of MTO at these levels trading at less than 2 times, next years earnings. MTO has 257 M shares fully diluted for a market cap of $83 M dollars with an additional $35 M dollars in cash for a $50 M dollar enterprise value. Based on this enterprise value and 60,000 ozs of production for next year of which 48,000 ozs are payable to Metanor, we are currently trading at book value for next year's earnings. I challenge anyone to find a near-term producer no matter the size trading at this deep of a discount. Metanor will be producing 48,000 ozs next year at a worst case cash cost of $550/ oz (Feasability study stated $464/ oz). Based on 48,000 ozs at $550 / oz cash costs conservatively, Metanor is looking at $50 M in earnings after taxes based on current gold prices. Investors are also getting Metanor's Barry Deposit with over 700,000 ozs of gold and over 80 IP anomalies over a 13 km strike length, absolutely free. What also must be remembered is that the Bachelor Lake Mine operates at 60,000 oz / yr at 66% capacity and a ramp up in production is possible at a later date once production is re-started.