Metanor Resources MEAOD

RE: RE: news out, MTO is profitable !

[JRaffles]

What does this all mean? can someone explain in 5 words or less?
tia

In 5 lines, Bachelor would be profitable and generate ~ $96.1m cash flow per year for 3 years, if.....

1. It borrowed $35.4m at 5% interest, which was paid back in the first 10 months of production.
2. The gold price averaged $1271 and production cost $464 per ounce plus $103 admin & sustaining costs.
3. The known 200,000 ounces would be extracted at about 60,000 ounces per year.
4. The Net Present Value of $76.3m inidcates that the bottom line for shareholders would be about $25m per year, based on existing reserves and no reinvestment costs.
5. The 200,000 ounce mine life will probably be extended significantly if cash flow is reinvested to locate new ounces. Also, the surplus cash could be directed towards the Barry development.

There is no indication as to how the $35.5m will be raised and this is critical for existing shareholders, who could be diluted by 70m new shares at
.50 (the plus would be that no 5% interest would be payable).  If this feasibility were to have been produced, say 2 years ago, perhaps only 35m shares at $1.00 sp may have been need to be  raised (gold was lower, but so were costs).  Management's test wil be how they can sell this to an investor in the best interest of existing shareholders (including themselves).  I would not be surprised if there were not a number of funding offers already on the table. Time will tell whether the directors can achieve the right balance between debt and new shareholder equity - at what price.