Metanor Resources MEAOD

RE:RE:RE:Mstettler...something to look at

[mstettler]

fruitvale3067 wrote: SDL has a sliding scale NSR that 3-5 percent depending on the price of gold for the Aurizona mine. Management believes they can double the size of the current resources.

Yes, but they need to finance the mine first, so significant resource definition will not probably happen in the short term.

How will LGC finance the mine?  Debt issuance, share offering or a combination?  A share offering will put a drag on share price performance.  But they are 6 months from a full FS so there is a good chance they could be taken over with such strong numbers in the PFS.  It would be a great fit for any number of mid tier or larger producers with cash in the bank.

If LGC were producing 150k per annum steady state, given that they will have one producing asset, in brazil, with lower 2P and M&I resources than their top peers one could reasonably assume a valuation of roughly 4X from here.  That is assuming today's gold price and a debt overhang due to mine construction.

Having said this valuations are all over the map these days.  Compare to MUX with 2 producing assets and similar production, similar jurisdictional risk, cash on hand and much larger reserve/resource base.  But with 18X greater market cap.

Compare to GCM with similar production and costs.  They have about 85 million in debt and the stock is still in the dog house, but they are in production (140K/annum) with decent costs and a massive resource base.  I beleive if that company can continue with it's good operating performance it will see a large revaluation.