OTCPK:MEAOD - Post by User
Post by
Quixoticaon Oct 15, 2010 9:16am
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Post# 17568278
Gold loan
Gold loanI am in favour of the gold loan. I had already given thought to that strategy last year around this time when they issued the PP. Why not take out a loan that will be repaid in depreciating dollars while protecting MTO's increasing profitability from the rising price of gold.
I hope we get good news on the progress of the loan so that MTO may complete the access at Bachelor. Once completed MTO can then begin to subsidize expansion at Bachelor and continue to delineate the Barry deposit. I think the co. is substantially undervalued and that any material issuance of shares at this point is pointless - take out a loan instead at a rate that is still palatable.
The problem with MTO is that they have too many good prospects making it difficult to advance them simultaneously. I vote for Bachelor/Hewfran #1 and then Barry #2. Get the cash flow and then reinvest it for some good g'old fashioned organic growth.
The current slump in MTO share price reminds me so well of holding SGR while so many others leapfrogged us. Today SGR has made up for much lost time. I believe MTO will make the same type of movement.
My 2 cents!
Have a good day