Metanor Resources

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LongGoldLongSilver
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Metanor Resources

What do you guys say about Metanor Resources? I've owned this b-tch for a while with losses but I must say it looks like a bargain ATM.

Outstanding shares: $200 million
Mkt cap: $50 million
Cash: $19 million with $6 million more coming in from Sandstorm Gold in September as part of a gold stream purchase where they buy 20% of production from Bachelor Lake for $500/oz.

They have two main properties: Barry and Bachelor Lake. The latter planned for bulk sampling this fall and commercial production early 2012. Planned annual production from Bachelor Lake is 60k oz of gold. A lot of spare mill capacity though. Metanor has mentioned extracting a lot of gold from Barry in the future with infrastructure in place and an open pit. That could get Metanor to 200k oz of gold/ year in 2-3 years.

Not gonna go any further, just makes it boring;) But it sure looks undervalued to me with potential cash flow of nearly $50 million coming in per year in the short term. The Bachelor Lake shaft sinking should be completed any day and the drilling campaign is under way.

Edited by admin on 11/08/2014 - 06:20

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Nowhuffo
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Metanor

Metanor is a stock that takes very good care of its management. I owned this stock years ago and actually was able to get out with a small gain. Since then I have watched this company dilute itself into nothingness. I think it had about 60m shares when I learned my lesson.

I'm not saying it is a fraud. If you consider good mgmt to be an essential part of your stock selection process you pretty much have to write it off.  Look at it's history on Sedar and you would probably agree.

It does have good pr. Just don't expect it to live up to its promises anytime soon.

TheGoodDoctor
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@Nowhuffo What is the

@Nowhuffo What is the advantage of Sedar? Does it have stuff that isn't in press releases?

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Nowhuffo
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Sedar

Sedar, (to the best of my understanding),  is a repository of all legal filings that a company must make in Canada.  Great place to see all the stock options a company rewards itself, follow dilutions, see all the details of a NI 43-101.  Press releases tell you what the company wants you to know and how they want you to  know it.  Sedar takes away the gloss.  In the case of Metanor you will see a history of dilutions and generous options awarded to the mgmt. Generally it's boring research. Sometimes it is quite entertaining.

Nowhuffo
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Sedar

For example: "The Company's financial statements and management's discussion and analysis are available at www.sedar.com"

LongGoldLongSilver
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I know the share price, or

I know the share price, or management for that sake, hasn't been making anyone happy in the past, trust me I know. Just saying that right now they have all the money in place to start commercial production and they do have one of the lowest valuations per oz in the gold industry.

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metcoalfan
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I've been adding almost daily

Mgmt does have a history of promising and not delivering - which is why I believe they've gone almost completely off the radar.  But they have Sprott buying via a pp earlier this year, and SandStorm committing a large chunk of their capital, also early this year.  Given mgmt's history, I'm going to assume that Sprott and SandStorm kicked the tires.  Nice grades, cheap on a book value basis, possibly soon to be in production (crossing fingers, knocking on wood).  Reminds me of Avion 3 years ago, also in the high .20s

metcoalfan
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EconomicFreeFall - was just

EconomicFreeFall - was just perusing your site this morning - great work.  I came into the mining space at the same time for the same reasons, following roughly the same number of juniors and really looking for those transitioning into production.  I agree, even at higher prices, they are more compelling now than 2 years ago - I was in fact telling a friend exactly that earlier this morning when I ran into him at Starbucks and he was complaining about 1600 having no gold.  Looking forward to new ideas on your page, especially as I already really like your favorites. 

On Metanor I keep coming back to the SandStorm deal.  I've watched interviews with their CEO and he has impressed me, though I never bought their shares.  ShouldaWouldaCoulda.   They 'loaned' MTO 20 million for 20% of production LOM from Bachelor Lake, plus 500 oz.   That suggests to me they saw BL future production as compelling at a valuation of 100+mm, yet MTO trades now for 50 mm and you get Barry deposit for free.  Sprott is in there too, which is always a plus, but Sprott is huge and can take speculative bets on a micro cap like this.  Given past disappointments, the SS deal is far more reassuring in a world without guarantees.   While not a pure equity investment - it will behave more like a loan if MTO can't get into production - SS has a relatively tiny pool of capital to be tying up funds  without a high degree of confidence in success this time around, imho.  Am I trying to read tea leaves?  Probably, but at the right price, I have no problem with that, I'll coattail SandStorm for less than half the price any and everyday.

leadbrasssilver
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MNNRF or MEAOF?

Forgive my ignorance. Both are called Metanor Resources inc but, the Metanor website only lists MEAOF as it's symbol. I'm sure there is a simple explanation for this.......

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metcoalfan
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MNNRF

MNNRF is a warrant on MEAOF, I believe with a one dollar strike and a may 2012 expiration.

LongGoldLongSilver
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Thanks metcoalfan! I'm trying

Thanks metcoalfan!

I'm trying my best to share my thoughts on topics which interest me. I think I probably have looked into the world of miners more than most others. Used to spend hours every day just reading about miners;). There are a lot of them out there with ridiculously low valuations even though they are profitable, debt free and with huge increases in production coming up. If Metanor can just get things going the next 6-8 months they could be making their whole mkt cap per year. Imagine if gold goes north of 2000!?

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metcoalfan
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Do you post on the MTO RB board?

If so, curious as to your SH handle, if you'll share.  I don't know many of the usuals there, and I've been on SH for awhile now and always pay attention to handles of those who know their shit.  I've followed it for well over a year now, but have rarely posted - I post a lot on some I like, and post very little on others I like - not to keep the latter under wraps - but just because some boards engage my attention to participate and others don't.  The MTO board never seems to interest me much even though MTO is my favorite flea bitten dog right now, and I do love flea bitten dogs, especially when they get 'adopted' by the likes of Sandstorm and Sprott. 

metcoalfan
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She's on Fire

Up over 50% in the last few days on no news - one of my favorite sleepers. 

LongGoldLongSilver
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That's it

It sure looks good ATM. Bulk sampling should commence soon and with 60k/year coming up in less than a year with gold probably north of 2k, I can't see how MTO won't be north of 1 dollar by then. Let's hope they can keep cash costs close to the feas. study's numbers...

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crackor
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I like this a lot

Thought to include this to the discussion. Might be old news to you pro's but here it is nonetheless.

http://www.sectornewswire.com/Report0911MTO.pdf

Think I will try to bring my holding up on this one.

metcoalfan
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I don't like to talk specifics

But I will say in this case I'm holding over a million shares and wondering what I was thinking two weeks back when I didn't buy much more under a quarter. It probably is my favorite right now. If someone told me tomorrow I had to liquidate all but one, I'm pretty damn sure MTO is the one I'd keep. Yes, mgmt has royally screwed up countless times.....but on the flip side....companies with perfect mgmt never get truly and insanely mispriced. Before I got almost exclusively into Canadian resource companies 3 years ago I had spent the 7 before that exclusively following bankrupt stocks. Bankruptcy structurally is the most beautiful of all the markets. Hard to believe but true...if anyone is interested I'll post why. But I switched because Canadian resource companies with better potential started trading cheaper three years ago, and many still do. But if bankruptcy taught me one thing, it's that mgmt that has completely screwed the pooch in the past can sometimes, albeit rarely, redeem themselves. The second thing I learned was never take it for granted, always look only for corroborating evidence. In MTOs case, it's those insanely smart guys at SandStorm. They bet for big returns and they paid up at a steeper valuation than now, even with it up 40% in a week.

metcoalfan
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New 'coverage' out on MTO today

http://miningmarketwatch.net/MTO.htm

has a decent analysis of the Sandstorm stream deal, which was what initially caught my eye.  This looks like paid for coverage, but I like them anyway. 

LongGoldLongSilver
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News

http://www.metanor.ca/en/index.php/press-releases/article/metanor-intersects-8.26-g-t-over-2.10-m-and-7.40-g-t-over-2.97-m-at-bachelo

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