OTCPK:MEAOD - Post by User
Post by
art27on Feb 11, 2009 6:26am
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Post# 15769285
Gold $920 and climbing
Gold $920 and climbingNow MTO sells gold at $1145 CAN - their cash cost $475 CAN gives $670 operating cash flow per oz.
Once they bump up the mill to 1200tpd that gives ~60,000oz annually. If gold keeps above $900 (and they say if will trade over $1000 soon) MTO's numbers with gold $920 look as follows:
$40,200,000 free cash flow.
If we take the fully diluted share count 100mil we get about $0.40 CAN cash flow per share
so on the low side 10 X CF gives us $4 CAN share price.
Whichever way you look at Metanor, $0.60 SP looks ridiculously undervalued with gold now over $900. I'm expecting a strong upswing in SP anyday now as we are ready to move over the 200 MA.
Art27