OTCPK:MEAOD - Post by User
Comment by
DaycareKid007on Sep 29, 2010 10:32pm
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Post# 17509951
RE: RE: Thinking of getting in
RE: RE: Thinking of getting inI don't think this stock is going anywhere in the short term. If you are in this one it is for the long haul. With managements plan to prove up Barry and build a concentrator mill there is going to be a need for significant funds in the future. Not only that but when I first spoke with MTO management back in 2008 at a resource conference they had originally said that they were going to be processing ore from Barry which was around 7 g/t at a cash cost around $400 per oz. At 1.25 g/t their transport costs are huge. I don't know if the company would even have any significant cashflow until they switch to ore from bachelor. In the meantime this means the company has to finance its operations through dilution there is really no way around it. How much dilution that will be is anyone's guess but it is going to happen guaranteed.