Old news, new viewMercator Minerals leads small cap initiation
Posted: September 08, 2008, 12:03 PMbyDavid Pett
"...But Scotia's top pick is Mercator Minerals, a copper mining companywith a new mine in Arizona. “We believe Mercator has an idealproduction mix for a single-asset company,” he said. The analystpredicts a one-year target price of $11, almost double the $6.92 (up17¢ or 2.52%) the company was trading at Monday morning.
Mercator'smine is forecasted to produce, over the 2009 to 2018 time period, about56 million pounds of copper and 10 million pounds of molybdenumannually. Mr. Terentiew expects the company to generate about $2.60 pershare of net free cash flow in 2009 ($194-million) putting Mercator ina good position to make an acquisition, and also an attractive takeovertarget."
P.S.
Some say, it is just a big corrction in the metals market, and those companies which survive will be a winner in the future, where the prices of metals will go highier than before the crash.
ML is a $2 - $3 company right now and the rise in the SP reflects that.