agm

Hi, I attended todays agm and as always a good meeting. They had reports from Hartleys and Euroz Securities both of whom rate MDL a buy. Dated 24th November 08 Hartleys.
Price target Euroz $1/sh. Hartleys $0.99

Some facts are. Maquarie Banks financing of mdl is the largest mining financing they Maquarie Bank Ltd have ever done and they went over MDL very very very thoroughly before committing.
Redback have not asked for a seat on the board and don't want one. They probably want MDL.
The Hedge book sale realised $60 million dollars and the opportunity was to good to refuse.
The gold plant they have built is a Rolls Royce of gold plants and one of the best in the world if not the best. Expandable to 4 million tonnes per annum.
The power station is a 38 megawatt plant but rated 30 mega watt because of the climate, though they have made ventilation very good so possible to get some extra if needed.
They expect some action possibly Redback early in the new year, First 3 months. More than one interested party
They said if same plant were to be built in Australia it would take 7 years not 31/2 as it has. There is alot more gold to be found. Reckon there is 700 to 800,000 alone in the pit. They have been concentrating on getting mine up and running.Expect mine to be running at full flow by March 09.
They will never pay a franked dividend because of the tax free status in Senegal, probably be 2010 before considered but may be a share buy back, that is if they still have mine. The first cash flows will go to banks who like to get there money back quickly.
The Phosphate mine, the one and only other mine has been running since 1961 and have had no interference from the Senegalese Government which is a good thing.
The institutional investors have final control over outcomes if a takeover bid is instituted and they mean British and American particularly and they have good relationships with them.The figure mentioned just for the gold side would be $1 mark
Mineral Sands is looking good, a couple of positive possibilities regards financing including development banks (including European ones) who invest in Africa particularly and long term though they have plenty of paperwork involved and they have investigated the project, or joint venturing.
They would expect an 18 month build time with the end of 2010 producing.
Hope that is useful. Please do your own dd.
Regards Ijay