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Mercator Minerals Ltd MLKKF

Mercator Minerals, Ltd. is a mineral resource company engaged in the mining, exploration, development and operation of its mineral properties in Arizona, United States and Sonora, Mexico. The Company’s principal assets are the 100% owned Mineral Park Mine, a producing copper-moly mine located near Kingman, Arizona and the El Pilar Project located in Sonora Mexico. The primary focus of the Company is the expansion of copper production and molybdenum concentrate production at the Mineral Park Mine, and the development of the El Pilar Project. Its other projects include The El Creston molybdenum property, which is 175 kilometers south of the United States Border and 145 kilometers northeast of the city of Hermosillo; Molybrook, which is located on the south coast of Newfoundland, and Ajax, which is located 13 kilometers north of Alice Arm, British Columbia.


GREY:MLKKF - Post by User

Bullboard Posts
Comment by LongonZincon Feb 20, 2013 1:03pm
229 Views
Post# 21017171

RE: RE: RE: RE: RE: RE: NEVADA IN AT .54

RE: RE: RE: RE: RE: RE: NEVADA IN AT .54

The one part of your guy's theories I don't get is how you figure they are digging themselves out of a hole?  I surely do not see that.  Operational improvements have been achieved and that is great.  There are still some pretty major problems.  For example, copper head grades and moly prices, and cash costs to produce, as well as the downstream costs of transport and selling refining, etc...  

IMO their inability to generate any significant cash flow under current metal prices, mounting debt, and massive dilution should strictily limit the upside potential.  While a good trading oportunity presented itself at the end of last year, that is now gone.  You also must look at the massive low cost moly producers that have come into production and planned near term production, this should limit molys upside potential.

Heck it was not that long ago when this was trading above $3 and I suggested there was a strong potential that the company would go under, it has not happened yet, but look at all the extra debt and dilution that has occurred.  They could have made this much better by being creative when the shareprice was strong, but instead, they added debt, took on massive dilution and waited for the sp to tank before doing the pp.  Now if a little guy like myself can see these problems and solutions well before the management team can, then how much faith should you have in these guys? 

 

Good luck.

 

 

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