MTO - Time to dust off the old analyst report...
Read this report...do not worry about the dates... tough times are behind us...good times are here. $$$$$$. GLTA
Analyst Issues Upside Price Target on Metanor Resources Inc. as Company Targets 60,000 oz/year Gold Production
Metanor Resources Inc. (TSX-V:MTO.V - News) (Pink Sheets: MEAOF) (Frankfurt:M3R.F - News) is identified in newly issued analysts report by Secutor Capital Management with upside market valuation. The analyst has initiated coverage with significant upside re-rating based on several factors; 1) Metanor currently executing on the Company's production target of 60,000 oz/year at its 100% owned Bachelor mine and mill in Quebec, 2) Net Asset Value (NAV) projection of readily achievable resource growth and extension of mine life scenarios at Bachelor, 3) blue sky potential at Metanor's Barry open-pit gold project, and 4) comparable analysis.
The full Analyst report may be found at https://sectornewswire.com/SCMCanalystMTOJan29-2013.pdfonline.
The qualified analyst has identified Metanor Resources Inc. as significantly undervalued at current share price valuation of under CDN$0.22; the analyst forecasts a $0.66 per share price for MTO.V under a comparison of the NAV calculated for in an upside resource and production scenario (accounting for the conversion of the Inferred Resource to reserves, as well as the assumption that approximately 214,000 additional ounces of gold will be discovered).
In market comparable analysis Metanor was compared to other junior production companies on an Adjusted Market Cap (AMC) to Production basis, as well as on an AMC to Resource basis. The Company compares favourably on these metrics, as it is lower than the group average. The discrepancy in the valuation may be because of the delays faced by the Company as it reached producer status, causing a decrease in share price. However, as Metanor ramps up production at Bachelor and achieves positive cash flow as Management expects it to do in February, this valuation gap may tighten.
Bachelor Lake Ramping Up Production to an Average 60,000 oz/year; Management Expects Cash Flow Positive by the End of February:
Production is ramping up at the Bachelor Lake Gold Project, QC, after delays caused by permitting and labor shortages. The Project is fully permitted and now fully staffed since a number of workers were hired due to recent mine closures in the Abitibi region. Management expects to make up for lost time, given its procurement of experienced labour, and achieve positive cash flow at the Bachelor Lake Mine by mid-February. A 5,000 t bulk sample completed last June yielded 25% more gold than expected and the mill is currently running at 96 to 97% recovery. The Company anticipates approximately 16,000 oz of gold will be produced by June 2013, followed by ~60,000 oz in the next year.
Extensive Drilling Ongoing at Bachelor; High Grade Results Extend the Vein System both Laterally and at Depth:
Metanor continues to drill the Bachelor Project to delineate additional resources and extend mine life. One drill is currently stationed underground and is dedicated to this cause. The Company has ~200,000 ounces of gold in reserves, but drilling indicates the possibility that resources can be increased. The deposit is a mesothermal gold system containing three identified veins: the Main Vein, Vein A, and Vein B. Promising high grade results from the lateral extensions of the Main and B veins were released, including 29.63 g/t Au over 4.42 m, 14.79 g/t Au over 14.02 m, and 19.19 g/t Au over 8.48 m. Since the last resource estimate, over 30,000 m of drilling has been completed.
Barry Open-Pit Gold Project Remains Blue Sky; Over 150 Anomalies, Potential 13 km of Strike, and Open at Depth:
Metanor envisions that cash flows from Bachelor will eventually fund exploration and development work at the Barry Project, potentially providing the Company with organic growth. The Property is a low-grade, bulk tonnage deposit 114 km from Bachelor with a compliant resource of 780,000 oz across all categories. It was operated by Metanor for a short period of time, producing ~40,000 ounces of gold, and is still permitted for mining activities. Management suggests that Barry has compelling exploration potential. Over 150 IP anomalies have been identified on the site, as well as a potential strike length of 13 km. The mineralization remains open at depth.
The full Analyst report may be found at https://sectornewswire.com/SCMCanalystMTOJan29-2013.pdf online.
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Contact information:
Simon Levingston, Executive Director
Market Equities Research Group
info@marketequitiesresearch.com