update on mlm & nav - read me!

UPDATE ON MLM/MTE (& OTHER ASSETS HELD BY MLM) FOR YOU GUYS WHICH I HOPE YOU MAY FIND INTERESTING.

ON THE OTHER HAND YOU MAY FIND YOURSELF KICKING YOURSELF FOR BUYING INTO MTE WITHOUT READING THIS FIRST LOL!:

NB - All prices below are mid AT 4.15pmm Fri 12/8/11:

MLM SP @ CLOSE 12/8/11 = AUD$0.355

Value of MLM holdings @ close 12/8/11:

MTE-(45.3%): 80M x AUD$0.67 = AUD$53,600,000 COAL

CBX-(20.8%): 26,867,621 x AUD$0.18 = AUD$4,836,172 BAUXITE

PMQ-(37%): 22,069,619 x AUD$0.085 = AUD$1,875,918 CU & AU

ORM-(14.9%): 11,866,658 x AUD$0.16 = AUD$1,898,665 AU & REE

MLM Total Value Listed Investments = AUD$62,210,755

Add cash @ AUD$8M (approx) = AUD$70,210,755

MLM shares on issue: 128,800,000

MLM Mkt Cap @ today's close AUD$0.355 per share = AUD$45.44M

MLM also acquired 100% control of NORNICO resource (large scale nickel, cobalt & scandium) on August 4th 2011 from Straits for AUD$18,858,649 plus 1M options (exercisable from date of acquisition) at AUD$0.50/share and in addition terms will also see Straits issued with a further 1,000,000 options to acquire shares in Metallica at an exercise price of 70 cents upon Metallica advising Straits in writing, or Metallica making an announcement to the ASX, that a decision to mine either the Kokomo deposit or the Lucknow deposit has been made (the Vesting Date). These options will expire on the date being 3 years from the Vesting Date.

MLM NAV EXCL-NORNICO & OTHER PROJECTS = AUD$0.545 per share

In other words approximately TWENTY CENTS per share DISCOUNT to today's closing price of 35.5c...

And I stress again, this is EXCLUDING NORNICO and other sideline zircon-rutile & limestone-lime projects (which imho they're keeping up their sleeves until their major focus projects as detailed above are underway.)

The NORNICO resources (measured & indicated) comprise approx 49 million tonnes @ 0.81% Ni per tonne, 0.09% Co per tonne and 15.1 million tonnes @ 133g/tonne for approx 400,000 tonnes Nickel, 42,000 tonnes of cobalt and 3,000 tonnes of scandium oxide.

Lucknow & Kokomo represent 2 of only 3 scandium resources of this exceptionally high-grade level of concentration in Australia - and MLM has the best 2 of the 3.

Lucknow is estimated therefore to contain 1,051,560kg of scandium metal and Kokomo 968,000kg of scandium (approx).

So, to conclude, MLM at current share price represents a staggering discount of approx 35% to NAV... EXCLUDING NORNICO & other smaller projects in MLM's ownership.

MLM's shareholding in Metrocoal (MTE) ALONE is worth $53.6M - AUD$8.16M MORE than MLM's market cap itself!!!

Do the math guys & girls... not only are you getting the various underlying shareholdings at a massive discount, but the rest of MLM's projects (including NORNICO!) aren't even figured into the share price yet...

So if you're considering buying MTE right now - pause for breath... and look at the numbers... and buy-in thru MLM to access the significant discount - everything else is a huge bonus & glaring opportunity imho.

Best of luck all!
DYOR!

VRS

(Disclosure - I DO hold MLM & am accumulating after recent mkt meltdown up to around 45c, then intend to holding medium-/long-term to realise the increasing sp's of the underlying holdings and the prospect of NORNICO coming on line sometime around 2013.)