Mercator Minerals Ltd MLKKF

The MLY Companies

[24~Karat]

It was great to have company president Mike Surratt appear on BNN. He did a wonderful job. Anyone investor who viewed that presentation would have the utmost confidence in the company’s future performance. That said, ML investors sometimes wonder why other companies in the same category as ML are awarded a richer premium than ML. To illustrate, here is a chart of the 5 top companies in the Sprott Molybdenum fund (along with MLY itself). Two of these companies come with the proviso that “Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.” ...I think it is an even bet that at least one of these companies will never produce economically. By way of contrast, Mineral Park provides the certainty of having had 16 years of proven molybdenum production, and at prices much lower than today’s prices. This point is almost never emphasized, but in reality, it reduces risk almost to zero. Or, that Mineral Park will produce the highest grade moly concentrate in the world. How’s that, compared to the distinct element of uncertainty that some of the other companies provide; OR: the very rich premium that the investment some of the other companies require. For instance, MLY itself comes at at nearly a 15% premium to the value of the underlying components.