RE: RE: RE: RE: RE: RE: MTO hits 52 week low today
With tax loss selling around the corner, I see MTO going at least .06 to .10 lower than it currently is before years end. I'm calling for a .31 low by years end.
There is every possibility of the numbers your forecast being reached before any upturn. I also agree with Rattle's point that it is financing, not prospects, that is spooking the sp. Indeed, the downside could be further adversely effected by a credit crisis, where existing management's record of delivery would probably make financing very expensive and therefore unreasonably dilutive.
Since Metanor's assets are fundamentally sound, then the weak link seems to be the director's credibility, which has been damaged, not least by the last 12 months lack of candour. For this reason, I consider it unlikely that Metanor director's would be able to negotiate a gold backed loan on favourable terms, though I would be pleased to be shown to be overly pessimistic in this regard.
Therefore, if the Metanor sp were to fall, as indicated, then I would welcome a takeover by a company with the wherewithal or cash flow, to bring both Bachelor and Barry to production at commercially viable financing cost.
If this were to occur, then, it could be a re run of a 2008 investment that I held in Patricia Mines which was under funded, with the company's Island gold mine stil in a pre production phase. The outcome was that, following a take over from Richmont Mines, the Patricia Mine investment, under the umbrella of RIC, blossomed.
At this stage of Metanor's development, the directors may have to be courageous enough to ask themselves whether, if the company were to be taken forward under a more robust financial entity, whether it could deliver better results to shareholders as a whole. I am on record on this bullboard as being in favour of a takeover, as it has been apparent for some time, that Metanor has spread itself too thinly, with two major projects running in parallel.