RE: RE: RE: Industrial Alliance Report on MTO I'm not sure if Industrial Alliance are obligated to put out a follow-up report a year later but if so, they've got some explaining to do.
The point of reference that is required when reviewing the Industrial Alliance report and SP projection with hindsight is the representations that were made by the directors at that time. The last PR from Metanor relating to full production was at the end of August 2011.
www.metanor.ca/media_uploads/PR23082011.pdf
In that PR, the directors reaffirmed when the annual rate of production would be achieved, which was ………The Pre-Feasibility Study outlines an average annual production of 60,000 ounces commencing in July 2012.
Therefore, when I&A made their 26 October 2011 projection, it would have been based on the company information that Metanor would have been in production at the rate of 60k ounces a year in July 2012.
If follows, therefore, that I&A relied on an optimistic production forecast from the company. More recent information available to most bullboard readers is that:-
- Directors may now only become cash flow positive in December 2012 and,
- SSL has produced a budget of Metanor’s gold ounces estimated to be 30k ounces in 2013.
Accordingly, if Metanor is now expected to achieve production rate equivalent to 60k by, say March 2013, then the I&A earning and SP projection should be run fast forward by 8 months, form the directors 2011 Q3 representations to I&A.
Therefore, I suggest that we revisit the I/A share price projection of C$0.95 in March 2013, in order to offer them a level playing field (unless directors move the goal posts yet again).
Do Grampatech’s chart technicals extend to a price in March 2013?