Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-9

@GT55

concerned - not particularly - but thats because of my bullish PM bias and bet sizing and the capital value. it is a high leverage play - so I've weighted into it accordingly.

Ag exposures currently have an avg value of ~ $1.40 enterprise value per silver ounce among Aussie silver developers. Though there are a few in that that are particularly high.

so 53Moz Ag at call it $1/ Ag oz = $53M EV value for the silver resource

+ operating mill that I treat as $100m

(it would cost $130m+ to build that plant currently - going on reports of demand for consultants and engineers + raw inputs)

but $100m seems fair

so MKR's asset value id put at $150M EV + mt boppy

stock currently valued around $95M EV - because of concerns about cashflow. which is why i said a while back its often safer to be in developers than to actually go mining.


Anyway = an "easy" 50% upside purely on asset value catchup - if the metal prices and production move just a little in favour so cashflow concerns abate allowing the market to step back and give more value to the sum of the parts

but Im only a bull at all due my technical views on gold and silver price history and correlations


eg the breakout in US 10yr inflation linked bonds night before last was in my view a major breakout point for gold and silver

the market probably wont bet it with conviction until and unless gold gets above $1910 of so I expect - technically thats where it would be obvious it had resumed a bull move

mkr risk/reward setup is compelling here- but the reward is highest when the risk appears to be highest. unavoidable

as i said ages ago it isnt a stock i could bet the farm on.

but in the size i hold and entry price - the risk/reward setup is fine to outstanding.

maybe not 5:1 but certainly 3-4:1 potential so its fairly asymmetric.

but thats just how i assess things for my own purposes. everyone has to choose their own path