why hasn't it, page-3

Doc..............I hold MRC big time but we need to remember that it is not even at the point of bankable feasability study.............that's going to cost money and then the big one...........it's going to cost them close to 150 MILLION dollars to set up the infrastructure as a standalone operation. That is just a best guess by the co and many $$ may be saved if they can negotiate with those already in the area for use of some facilities or do it as a JV.

It'll be how they come up with this money that determines the shareprice. The NPV of 80 mill US is a DCF figure on operating cashflow over 20 years which would include interest payments (presumably it assumes 70% debt funding). The other 30% of that 150 mill has to come from somewhere else and if its from issue of shares then it'll be diluted to hell bearing in mind its small market cap now. On the other hand if they can get the money from some of the black empowerment groups (South Africa has legislated that these groups have an option to buy 26% of new mining operations) without the issue of huge numbers of shares and then cut some costs as described then $2/share is not out of the question.

There's plenty around who see big value in this company anyway..........the Caruso's have their money where their mouth is. TEM have accepted payment in shares at value 20c and the SA Export Development Fund have put up money to convert their investment in MRC Resources into MRC fully paid shares at a price per share of OVER 60c. This fund has options to take up further equity in the company and may be the ace card that MRC can play re funding.

Interesting times ahead.

And as I've mentioned previously look out for some action within Australia from MRC within the coming month and an investment in another existing cashflow positive project.

Hard to put a value on this company..........the CEO's comparison of the 80M NPV and the current capitalisation was rather simplistic (and perhaps a little misleading) but there is no doubting the potential for significant re-rating if things go to plan.

Ed.