metOwned this several years ago.
Seemed like a good buy at $12-15/sh.
But they don't have as much natural gas as I thought they did. Their recent Sedar listings show about 16 MMcf, or about 2.5 million BOE.
I thought they had more like 5 million BOE or so.
Maybe I saw some old analyst estimate who was estimating what they have not just based on proved and probable reserves but also possible reserves or resources.
Anyway, even at 2.5 million BOE, a market cap of $12.5 mil puts this at $5 per BOE, which is very cheap for conventional NG, maybe not a super bargain for unconventional.
I am not even sure if their gas is conventional but I would think so because they've been producing this stuff for decades and it is my impression that unconventional NG sources haven't been around that long.
Anyway, they have that nice gold property at Cedartree and the NSR on Brookbank, these guys really do seem like a pretty darn good value.
I recall in the old days when people had comments about this company their main misgiving was the company is so darn conservative. But that's not such a bad thing. Get a load of this from their MMA "The company has protected the equity of shareholders for the past forty years by financing all exploration and development costs with cash flow from operations".
Nice conservative investment. Except that it will probably take 100 years before we have a better idea how much of a gold deposit Cedartree actually is.
I think what these guys should do is spin off the Cedartree property as a standalone junior gold exploration company and have it issue a couple million dollars worth of stock to give it some seed money to do some drilling. Metalore could retain 50% of the shares or something along those lines.
For the conservative investor, Metalore would remain an ultra conservative natural gas investment. But for those with a gambling spirit they could put a few bucks into shares of the gold spinoff.