Metanor Resources MEAOD

RE:RE:RE:Well, well, well, drilling on Barry...

[mstettler]

fruitvale3067 wrote:

It has occured to me that they may not be seeing a compelling business case in the upcoming PEA and have decided to shift focus to resource definition instead.  As usual we are kept in the dark with regard to the company's vision and strategy going forward.

Mstettler, I was thinking the exact same thing. It certainly didn't take them long to switch gears after Moroy blew up in their face. Question is how many more ounces is 8000 meters of drilling going to add to the inferred at Barry. Plus, now they are going to drill some new area. I'll say it again, to me it looks like an act of despiration and they need to find ore fast, and lots of it, preferably on the surface. So lets drill and hope for something close to Windfall. 

So if my hypothisus is correct. Bachelor lake is running out of ore, Hewfran will fill the void temporally, but know one knows how long it will last. Moroy is done, which leaves Barry, which is not fully permitted, and some long shot area they will drill near Windfall lake. Then there's the mill that needs to be expanded to meet 30,000 to 35,000 ounces going forward, and 9 million in convertable debt due in just about 11 months now.   

On the other side the Barry PAE should be out shortly, the 4th quarter reults should be out shortly, and Osisko might buy them out at any time. 

We see the same side of the coin.  If you look at the 2P reserves estimate from 2011 on bachelor/hewfran and take into account total production since then you will see the reserves have pretty well been used up.  Management has never indicated that they are replacing reserves through drilling.

I find the new website to be absurdly hilarious.  Besides deliberatly using historical production numbers and costs to put on lipstick the investor resources section does not contain any up to date information.  I especially like the box entitled 'What is our plan?  See our corporate presentation.'  

This links to a presentation from July 2014 and Feb 2016.  In the more recent of the two they are proclaiming that moroy is their next mine, production is steady at 40K oz per year and all in cost at $1000/oz.  None of which is true.  They also publish a reserves estimate for bachelor from 2011 that has had 5 years of production taken from it.

This is why MTO has a 40 million market cap.  I don't know why it is so hard for some people to understand.  No earnings + 50% share dilution + declining production and reserves + debt fast coming due and no way to pay it off = low market cap.

Let's hope they hit on barry and find a way to keep drilling it off.

Let's hope that the drilling on barry hits and they can find a way to coninue drilling it off.