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Mercator Minerals Ltd MLKKF

Mercator Minerals, Ltd. is a mineral resource company engaged in the mining, exploration, development and operation of its mineral properties in Arizona, United States and Sonora, Mexico. The Company’s principal assets are the 100% owned Mineral Park Mine, a producing copper-moly mine located near Kingman, Arizona and the El Pilar Project located in Sonora Mexico. The primary focus of the Company is the expansion of copper production and molybdenum concentrate production at the Mineral Park Mine, and the development of the El Pilar Project. Its other projects include The El Creston molybdenum property, which is 175 kilometers south of the United States Border and 145 kilometers northeast of the city of Hermosillo; Molybrook, which is located on the south coast of Newfoundland, and Ajax, which is located 13 kilometers north of Alice Arm, British Columbia.


GREY:MLKKF - Post by User

Bullboard Posts
Post by jims101on Dec 28, 2008 8:29pm
562 Views
Post# 15668899

May '09 Copper trading at $1.33

May '09 Copper trading at $1.33

https://futures.tradingcharts.com/marketquotes/HG_.html

As one can see from the following chart May '09 copper was trading over $3 even at the end of May 2008...
https://futures.tradingcharts.com/chart/CP/W

Why at least some portion of copper production was not hedged, puts not purchased at least, is the very first question I'd ask management...

Given the requirement to remain EBITA positive by at least the amount of the interest due on a quarterly basis going forward from March 31, 2009, one would have thought maybe a little downside protection would have been purchased...

In the event the earnings of the Corporation before interest, taxes, depreciation and amortization ("EBITDA") on a consolidated basis in any quarter beginning after March 31, 2009 does not exceed interest expenses under the Notes for that quarter, the Corporation will be obliged to repay to the holders of the Notesthe lesser of its Free Cash Balance and 25% of the outstanding principal of the Notes.

Bullboard Posts