Charts as dead as a door nail but still trading within a symetrical triangle. The lack of volume and share price action can only be attributed to the fact that people are waiting for the EPA approval which is expected to be announced on 02 March. With any luck, the approval will arrive at the same time that silver breaks above $15.20! I will go out on a limb and predict that the share price will surge to a new high just on these two events! I now look at BSG with its market cap of close to AUD$900M and MMN at $140M and I know without doubt where the best value for money investment out of the two is! Just do some sums on silver at US$24 and you get EPS of 54 cents for BSG and EPS of 14 cents for MMN. Give them both a P/E of 7 and you get $3.80 for BSG and 98 cents for MMN. Obviously I have not included BSG's other Mexican tenaments which maybe worth $2 per share but which ever way you work it out, BSG is a double from current prices whereas MMN is a triple! The MMNO's are a five folder in this scenario!
As MMN's share price increase it will be admitted to the ASX300. Probably needs to trade above 50c for three months or so! Have a look at BSG's chart and there is two distinct surges in its chart. The first on admission to the ASX300 and the second not long after being admitted to the ASX200.
Pure silver plays are as rare as rocking horse poop! Silver is going to a minimum US$20 in the next 8 weeks. I have read analysis from two well respected silver analyst who are predicting silver at $US24 before this leg is over.
Add to that the fact that gold, silver, hui,xau have all broken out of their respective consolidations and we have the ingredients for a explosive move to the upside.
The biggest risk with MMN is the EPA approval! Surely they haven't tried to do it on the cheap a second time! Once forgiven, not twice! Anyway, if the OX can make the same EPA mistake I will give MMN the benefit of the doubt.
MMN
macmin silver ltd
