metminco boosted by progress at los calatos, page-37

MGO is prob a good comparison in some respects Papertigger.

In regards to future dilution MNC are fully funded thru 2012. PFS will come early next year and no doubt if MNC are not taken out by then it will require more cash. I would think if we got that far the sp would be much higher than what it is currently therefore limiting dilution somewhat.

Why will the sp be higher? Firstly, on a like for like basis comparing tonnes of contained copper imo MNC is already undervalued compared to MGO (currently their mkt caps are similar). How much higher, min 10% i say.

If you look at slide 7 of the most recently released investor presentation by MNC they say 'enterprise value at 18c a share: 2.4 cts/lb CuEq' We know that based on recent takeovers for similar deposits that this is cheap. Perhaps MNC is undervalued by more than 10% at the moment? Many resource companies are.

Most importantly imo is that the interim resource upgrade is due within the next couple of mths where it is widely expected that the resource will double from where it is currently.

This means imo that while MNC should already be valued higher than MGO this gap should widen.

I also personally prefer the location of Los Calatos though it is noted the capex is roughly similar.

In addition, MNC have a raft of other projects in Chile, from advanced to grassroots exploration. For eg, the Mollacas project is ready for a feasibility study and while it is small if it gets to production is a nice little earner in its own right.

In saying the above nothing against MGO, I used to hold them and am still a fan, just a bigger one of MNC.