mte - on special

Either someone doesn’t want this stock to go up as their burse is not yet full (i.e. similarly when it was in the 30 cents range) or the only people left in this market are traders. Nevertheless, Bundi is turning out to be an outstanding project based on the drilling results provided to date. In particular, the Macalister Upper seam with thickness varying between 3.5 – 7 metres looks ideal for longwall mining. The production rates and operating costs of longwall operations these days are not only matching but outperforming those of open cut mines employing large draglines (and certainly better then truck/shovel operations).
So what is this deposit likely to be worth when it gets into production in say 4- 5 years? As a comparison, just last year Banpu has paid $2.5 Billion for 80% stake in Centennial Coal with thermal coal resources of approximately 2.4Billion tonnes spread over 15 separate mines. Since MTE’s resources are located in one area, the potential savings in infrastructure, maintenance and overheads costs will be huge. Certainly, the potential of this project is being recognized by overseas investors - as indicated by recent placement and several non-binding offers for joint venture partnership (with successful partner to be announced by mid of October). Unfortunately, it seems that a lot of Australian investors have thrown out all the fundamentals and are only interested in short term rewards. With MTE’s current market being only $103M (e.g. representing less then 3% of its potential future value when in production) and the barrage of positive news scheduled to come out in the next few weeks one would expect investors positioning themselves for huge returns – or as on numerous occasions in the past will they miss out on this special sale offer.