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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
Comment by ElJon Jan 09, 2010 11:01pm
455 Views
Post# 16660299

RE: has anyone done any dd

RE: has anyone done any ddBluespruce,
You have had a few well informed responsed to your query about DD on ROK-V as a Moly producer,   from -  Longonzinc  post ID 27804787 and JustinRBCDS post ID 27805000, etc.... and I will try not to cover the same aspects.  I add a few brief summary comments:

1. The price of Moly Oxide is the 1st key IMHO to short-range share price for ROK-V - very significant leverage as a single product operation(current)....one on the other BB responders accurately summarized other opportunities(incl. other products) both local and International(Mexico) 
2. There is no debt in the financial structure (which reflects strategic policy and consequences)
3. Head Grade is a 2nd key issue  example:  Q1, 2009(ended Nov. 30, 2008) 1.02% ;  Q2  0.79% ;  Q3  0.78%; 
    Q4  0.63% (Q4 ended Aug 31, 2009)....head Grades in  year 2010 will be interesting.
4. The rate of Depletion & Amortization changed dramatically in June 2009, because of the decision to proceed with the expansion(had a major impact on Q4 earnings(going pos. for 1st time, but Q1,2010, etc.,  will be interesting)
5. Increase in production capacity is a further key issue  -  BC EAO have agreed that Roca can proceed to a review by  BC Mine Review Commottee for permission to expand from approx. 475 tonnes per day to 1000 tonnes per day with no addition to current operations footprint (new ball mill, etc...)
6.  As is the case for all Moly companies,  the normal industry practice of Revenue adjustments in quarter N+1 for shipments in quarter N, will be positive in a rising Moly price environment, but clearly this applies in reverse in a falling commodity price trend.

On the issue of intergity, I am a holder of ML and ML+A warrants, but hold no ROK-V at this time.
ROK has, amongst many other considerations, a purer exposure to Moly compared to ML at this time,  which applies obviously to both up and down direction of Moly.

Hope that some of this is useful,
Peace,
Good Decision-making to All,
ElJ 
  
Bullboard Posts