RE: ML vs. CRDIt is interesting that you should mention ML, which along with CRD, is my favorite stock.
But there are some important distinctions among the two.
The current modest production that ML has is about to be expanded substantially.
Mercator is a large tonnage operation that is currently putting the finishing touches on a Feasibiliity Study that will likely substantiate $7.7 billion of in situ value of molybdenum (basis $16 moly) and $3.8 billion in situ copper (basis $2.40 copper). During the 1960s, Cyprus operated the mine for 18 years, and in so doing, removed the vast majority of the overburden, so that subsequent operations will have the benefit of an exceptionally low strip ratio.
It typically requires a capital cost of $300 million to place a 30 to 40 ton per day mill into operation. But, because Mercator has all of the infrastructure in place, and has already purchased the mill last year at the giveaway price of six million dollars, the company estimates that their cost is going to be significantly less than $100 million. That is a $200 million windfall.
That amount of equity, when calculated against the number of shares that are outstanding, equals C$3.56 per share. Since ML is currently selling for only $2.15, buyers are getting everything else for free--1.6 million pounds of copper, 480 million pounds of moly, and 40 million ounces of silver.
One other bonus: ML has 8.3 million pounds of copper in inventory, in finished product and in-circuit copper, and 10 million in cash