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iShares Global Materials ETF V.MXI


Primary Symbol: MXI

The fund seeks to track the investment results of an index composed of global equities in the materials sector. The fund seeks to track the investment results of the S&P Global 1200 Materials Index (the Underlying Index), which measures the performance of companies that S&P Dow Jones Indices LLC (SPDJI), a subsidiary of S&P Global, Inc., deems to be part of the materials sector of the economy and that SPDJI believes are important to global markets. It is a subset of the S&P Global 1200.


ARCA:MXI - Post by User

Comment by wilwalon Nov 27, 2015 7:55pm
136 Views
Post# 24333643

RE:RE:RE:RE:Valuation

RE:RE:RE:RE:ValuationIn my calculations, I converted the $US/oz numbers into $CDN.   For the $50/oz, it became $67/oz based on today's rate.  

So the low end was 900k oz x CDN$67/oz  =  CDN$60.3 million or .31/share

The high end was 1million oz x   CDN$80/oz = CDN$80 million  or .41/share

.60 is possible if MXI hangs around to drill out the extension that is expected to be approved by December.  The extension appears to be a wider deposit, and as ng9221 points out, has the potential to yield as much or more ounces than the existing Diakha.  So add in another 600k ounces at say CDN$75/oz  and you could get another .20/share.....however that is dependent on how much dilution has to be incurred in order to pay for 2015 and 2016 drilling costs.  

Frankly, I'm inclined to prefer taking .40 (if that is the right number) now than continue diluting the company in these bad markets......in order to pay for drilling in Diakha and Karita.   I would much prefer to fund Karita with .40 shares than with .15-.20 shares as long as the market is in the mood to discount the true value of MXI.  If MXI is forced to pay for 2015 and 2016 Diakha drilling and 2016 Karita drilling at .15/share, it could add as much as 50 million shares.   That changes things in a major way.  In fact, if MXI remains whole for 2016, I would prefer to see a very cautious drilling program on Karita until either the markets improve, or they hit the sweet spot with some very good drill results.

Regardless, MXI is not going to stay at .15 forever, and probably not for long.  The 43-101 next month will prove there is plenty of value in MXI with plenty more to come when the Diakha extension is approved to drill.   Now is the perfect time to buy into MXI.  It's a very safe buy up to .25/share as most of us can see that the company will prove that it is worth far more than .30 when the next 43-101 comes out and the Diakha drilling commences on the extension.  Hanging in for 2016 will increase its worth again to as much as .60 even without anything good coming out of Karita.  This has to be the junior driller with the most upside of any out there on the market today.
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