graham58
i wonder whose interests would be served by just walking away from the MS mine & letting it flood? with annual world gold production on the slide a deposit like the MS mine is worth billions in revenue to any miner who brings the ore to surface.
if we go with your idea of MCO being undercapitalsed to take the MS mine forward into full production, then a merger would be the best scenario wouldn't you agree? i actually hope that a merger does eventuate; essentially because of your point about MCO capital reserves.
did you read todays story in the age newspaper about OZminerals putting a gold mine in indonesia up for sale.
http://business.watoday.com.au/business/oz-hopes-for-quick-sale-of-martabe-gold-project-20081231-77xk.html
The project has up to 2.3 million ounces of proven gold deposits, according to the document. It also has 30.1 million ounces of silver.
now MCO has a jorc resource of 910,000 ounces multiplied by grade Factor of 2.5fold = 2.3 million ounces.
the article says that the Ozminerals project in Sumatra may be sold for at least $362 million, according to an adviser to one of the potential bidders.
considering that the MS mine still has more gold not yet jorc'd (archival records alone are only 45% interpreted), then both deposits have a similarity & could both be valued at $362 million for arguments sake. therefore MCO could have a value of $3 a share based on a comparison to the indonesian deposit.
if you disagree then what value would you put on the MS mine in a full takeover scenario for MCO ? still let it flood? or sell it for a few bob so as to have a few days soaking up the drinks at the woods point pub?
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