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Metanor Resources MEAOD

Metanor Resources Inc is engaged in the production and sale of gold as well as acquisition, exploration, and development of mining properties. It projects include the Moroy Project and Barry project among others.


OTCPK:MEAOD - Post by User

Bullboard Posts
Comment by Margreton Apr 01, 2013 10:10pm
119 Views
Post# 21195645

RE: Answered your own question.

RE: Answered your own question.

I guess you're too afraid to do your own grade 2 math and ask other people to do it for you.

 

"Metanor Resources Inc. reports that it has no exposure to Canadian asset backed commercial paper. Metanor's cash is invested in highly liquid instruments with financial institutions."

What page is that on? It sounds like it is referring to their cash on hand (what they have invested that cash in), not their debt.

"Production of 60 000 oz at 800tpd @ 464/oz and 7.13g/t grade."

This was the projection made by the independent geologists in the pre-feasibility study that was done for them. All RP and MTO did was quote that study. You should be blaming Stantec not MTO. Cost has increased for all miners, that doesn't mean they were lying like you. And this is for steady state full production. MTO is in the middle of ramp up. You can't expect ramp up numbers to be the same as steady state production.

 

"Last but not least, if MTO is not cash positive at 3000 oz per month that means if everything goes exactly right there is only the marginal possible profit from approx. 1000 oz per month."

The March quarter financials aren't in yet, you can't be sure of the exact point, and these are ramp up numbers, not steady state full production numbers.

And you can't assume if 3000 oz/mon is the break even point leaving 1000 oz/mon for profit, then multiply 1000 oz/mon x $500/oz gold profit (very approximate) = $500k/mon x 12 mon = $6M profit per year (which is not bad for a $45M stock). The 3000oz/mon to break even would have included all the other capital costs, so the remaining 1000 oz isn't including that capital cost and other expenses. That is with your assumption of 4000 oz/mon (48k oz/yr). And that 3000 oz/mon was using 5g/t. When fully ramped up, the grade may be closer to 7g/t which would decrease cost and improve earnings.

 

"Do the math and you will find that a balloon payment in three months might be a bit tough to pay."

There you go lying again. The so called giant balloon payment of $1.399M is due at the end of the loan Apr. 30, 2014, not in 3 months. In 3 months it is only $0.466M.

 

 

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