Gold producer; no hedging. Price to go up.The Company has a 30% interest in JV open pit operation with Barrick - the cash cost is significantly less than spot prices being received. The balance sheet of the Company is a little bit difficult to understand because it is not currently rerflecting the JV income. The JV income will not be reflected until Barrick recoups all the capital costs of mine development( Barrick covered 100% of mine development; mdn took none of this risk) which should be sometime in 2007. When the mine costs recouped by Barrick in 2007, the JV will start distributing cash to mdn.
Barrick currently assessing feasability of underground mine below pit.
Also, the Company has its own very promising(without Barrick) prospects in Tanzania not far from the mine itself. Other good prospects in Eritrea.
Great upside potential from now to 2007!