RE:Start up pre-commercial producer[img]https://https://www.miningradar.com/img/charts/20131025-life-cycle-explorer400x0.jpg[/img]
Jamesson wrote: A week ago after the big wave up and down, you could hear a fly on this bullboard. The flippers sold their shares in prevision of an awful financial report or that the company fail to do it before the end of April. Unfortunately for them, it didn’t happen.
The flippers make a lot of money by manipulating the opinion around those exploration stage companies. But MBAC is not an exploration company; it is a start-up producer company. An exploration company have no dept but they are without asset. They are at the beginning of the life cycle, drilling tonne of holes based on a dream of...
I am amaze how sometime peoples buying exploration miner companies without dept think they are investing on value, because nothing is more at risk than those companies. They still have everything to prove. They have to find the resources, built a proven, probable, measured and indicated reserves and resources, mount their feasibility study, find the financing to built the plants, balance their finances during the construction and then ramp-up the production to the commercial stage. MBC is now at the last steps of this huge evolution.
MBC have a reasonable dept, but they actually face working capital liquidity problem; yes so what?
As September production, they proved that their commercial capacity can be reach according to their feasibility study.
I have seen some stupid calculations pretending that his value is now at 0. Common peoples!!! You can’t subtract the financial cost, operational cost and quarterly loss of the NPV. It is part of the pre-commercial start up costs, the company need to reach his full commercial to start to be cash flow positive.
And I read comment saying that the build plants have only the value of the steel. What???? MBAC is a pre commercial operating miner company. Do you think the bidders think like that? Again it makes no sense.
According to the last financial statement, the NPV is at 183MM, so the share price value is at $1.00/share. If we soon have a joint venture or buyout we can’t really expect this price, but I expect between 0.20 to 0.50
Personally I would prefer that they sell Araxa with his high grade deposit of REO. Than they could ramp up to commercial production, bringing the share price even higher than $1.00/share
Anyway, if you know other companies that have this value at this share price, please shared it with me. I would love to receive that kind of information.