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Bullboard - Stock Discussion Forum Metanor Resources MEAOD

Metanor Resources Inc is engaged in the production and sale of gold as well as acquisition, exploration, and development of mining properties. It projects include the Moroy Project and Barry project among others.

OTCPK:MEAOD - Post Discussion

Metanor Resources > Mining Journal Article on MTO
View:
Post by djtrump on Oct 08, 2016 4:40am

Mining Journal Article on MTO

Mining Journal Review tells the value and the reason for it to excel, https://www.miningmarketwatch.net/mto.htm is URL

Funny enough, the last poster said they are trying to tie the value proposition excelling to a neighbouring company that does NOT have a mine yet... What the last poster fails to recognize is "that makes the point"; Osisko does NOT have a mine as they do not have a mill!!!!!! The PEA at Windfall shows the grades are stellar, but the cost of construction of a mill is enormous. The key primary asset for Metanor is the Bachelor Mill. The Bachelor Mill would dramatically change the economics of Windfall as Windfall along with Bonterra are near 9 g/T. Osisko will need to bulk sample anyways, so better take out Metanor while it is only 35M market cap, might need to offer 75M but you get all of the mill without sandstorm, you get all of Barry, and you get all of Bachelor Mine (but ignore it for now, due to Sandstorm). Metanor is a stinkin deal here and keeping its head above water fine, when Barry comes online it will cash flow well at sub-US$900 cost per ounce. This is the plan and if Osiko wants to lock up the area and jump start things, it needs the mill and Barry. Heck, if I were Osisko I would lay rail line to Bachelor, but that's another argument.

Regardless, Metanor chugs along and has excess $$$ it can plow into growth non dilitively until the consolidation happens. It will. The big excitement is the drilling on trend with Windfall on Barry, that will pop things sky high if it hits (and if it doesn't, thats cool, as Osiko increasingly knows it is worth it to buy out the missing parts as I just described.

Here is initial copy:

 Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) is a successful commercial junior gold producer at its 100%-owned Bachelor Gold Mill in stable, mining-friendly, Quebec. Gold recovery rates at the mill are >96%, and in 2015 the Company produced >40,000 ounces of gold. With a current market capitalization near-$32.5 million Canadian (trading at only ~7.5 cents), MTO.V presents a significant opportunity for shareholders as its primary asset, the Bachelor Mill, has a replacement value of several times the Company's current market cap and is increasingly being viewed as a coveted strategic asset being the only mill within 200km in a gold-rich district. Metanor's total infrastructure is valued (estimated replacement value) at between CDN$150M to $200M. Of note, Eric Sprott recently increased his equity position in MTO.V, last purchasing shares on the open market 'above' the current trading price, and there is strong potential for MTO.V to excel near-term as the Company exhibits enhanced attractiveness as a potential take-over candidate in an area undergoing consolidation. The math on the inherent asset value seems to indicate Metanor is substantially undervalued and apt to trade higher, especially as the Company affirms the serious potential for production on a second front; possibly even totally supplanting Bachelor ore, beginning in Summer-2017 from a new 347,000 oz Au In-Pit resource (in all categories) at the Company's 100%-owned Barry deposit (located ~116 km by road from the Bachelor mill) under an improved higher-grade (2+ g/T) model. Barry is a game-changer as it will allow Metanor to process ore at its Bachelor Mill that is NOT subject to a streaming agreement. The Company is rapidly advancing toward reopening mining its nearby Barry open-pit, having received a positive preliminary economic assessment study (PEA) this September-2017 with NPV of $53.5M, IRR of 198% before taxes, and all-in production cost of $1,114/oz (US $891/oz).

Fig. 1 (below) Primary asset: 100%-owned Bachelor Gold Mill

On September 22, 2016 Metanor announced a positive PEA on Barry. Metanor's Barry project now appears destined to become the first to achieve a steady gold production scenario amongst a handful of players (include Osisko Mining Inc.'s prolific Windfall Property, Bonterra Resources' Gladiator Deposit, Beaufield Resources' Macho claims, and Urbana) whose gold system collectively is part of a new mining camp in the Barry-Urban township of Quebec.


Significant cash flow without high development costs at Barry open pit:

Read the whole thing at an IRR of 246% before taxes. Spot gold is currently (as of October 6, 2016) near C$1,660, and many believe substantially higher gold prices are in the cards. Under the base PEA we are looking possibly C$15M+ in positive cash flow per annum from Barry, under current gold prices we are looking closer to C$23M+ per annum in positive cash flow. Important to note is that Metanor will pay no taxes for at least the first 2 - 3 years with its loss carry forward on the books, plus there is no streaming agreement on the Barry project.
https://www.miningmarketwatch.net/mto.htm for yourself.

Love, you all, TheDonald

Comment by harleyonvacatio on Oct 08, 2016 9:00am
This post has been removed in accordance with Community Policy
Comment by MISTERTRUTH111 on Oct 08, 2016 11:26am
The THING today created this alias to join ITS several other aliases that IT uses to post back and forth to ITSELF pumping MTO.
Comment by fruitvale3067 on Oct 08, 2016 11:31am
Ok everyone, over the past 3-4 years we've heard the list or reasons why the company should be bought out by a mid or upper tier miner. This latest promo piece pretty much hits all of those reasons again. Here are just a few of those reasons this company is so valuable and a prime takeover target. New gold discoveries at Bachelor Lake Mining higher grades at Hewfran New Moroy Discovery ...more  
Comment by stocksnthings1 on Oct 08, 2016 4:18pm
  MTO.V Market Cap Range, Past 5 Years Minimum 10.38M Mar 10 2015 Maximum 83.70M Nov 14 2011 Average 38.58M   https://ycharts.com/companies/MTO.V/market_cap
Comment by longshot52 on Oct 09, 2016 12:44am
fruitvale3067 Wrote:Osisko should have done it years ago. If Osiso would have bought/merged with MTO 2 years ago (for the same price or cheaper they can get it today) they would be mining Windfall lake ore by now. Great post overall, but Osisko Mining OSK(Oban) has only existed for just over a year, also until Osisko Mining completes it's drilling of Windfall and does a Feasibilty Study they ...more  
Comment by pdcon1 on Oct 09, 2016 7:22am
the merger hasnt happened mainly because osisko is still in the planing stage and mto is still drilling barry to define ounces , then a take over price can be reached . unless a third party steps in today to speed up the process they are content to wait this out at the same time capping mto share price. Things could change over night with other parties interested in mto  as well as stellar ...more  
Comment by pdcon1 on Oct 09, 2016 7:27am
like detour when they took over trade winds  that had 1.5 million oz  it was inevitable , and it happened  .  The difference here is if osisko doesnt start moving here mto  will be mining barry by next summer . Waited this long and will wait this out  and continue buying shares
Comment by harleyonvacatio on Oct 09, 2016 9:38am
This post has been removed in accordance with Community Policy
Comment by PMInvestor08 on Oct 09, 2016 12:22pm
This post has been removed in accordance with Community Policy
Comment by PMInvestor08 on Oct 09, 2016 12:35pm
This post has been removed in accordance with Community Policy
Comment by fruitvale3067 on Oct 09, 2016 10:13pm
Well if they are in talks they better get it figured out reasonably soon, because if the share price is at this current level in 10 months when the 9 million in convertable debt comes due it's 128,571,428 new shares that will dilute this stock 29.7%. If you add that to the 432,000,000 currently outstanding you get 560,000,000 shares for a company who will be producing 8000 ounces quarterly and ...more  
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