A few blinkered sad sacks here?
The price will take care of itself in due course. Equity markets are not rational, prices undershoot and overshoot. But in the end the facts will speak..
In this market this is a great deal, and given the beckoning new directions for MNC in Colombia it’s great timing for the Company.
On Calatos, how many other deals like this have we seen on large undeveloped copper deposits? Altona is one. Others??
It leaves the Company still with 30% after taking the project presumably to decision to mine, or sale whenever to a big industry guy.
Important too is the coming work will include more drilling, to test near surface potential and also test anomalies TD2 and TD3. Successful drilling could add lot of value.
And yes great timing. It will certainly help MNC fund work in Colombia, near term to progress the Miraflores mine FS and especially to drill Tesorito.
Tesorito is major target, 500 x 700m surface anomaly, 3 vg holes to date, all economic grades . Plus big undrilled IP anomaly. Thus Miraflores offers 50koz pa for 10 years while Tesorito might be 200koz pa for 10 years??! Different league altogether. And it will not take much drilling to clarify this potential.
Then MNC will look at joint development of Dosquebradas with neighbouring listed Batero.
And that’s before major multi moz upside at Chuscal, plus rest of tenements.
TSX—V listed Red Eagle Mining (REM) is timely peer comparison for MNC.
REM is capped at C$150m (share price up about 3X since Feb 2016) and now building San Ramon underground gold mine, comparable to Miraflores. A small higher grade mine, reserves only 0.4moz, planned unit costs US$670 per oz including sustaining capex, within the Santa Rosa project, in Colombia, just N of Medellin. Capex US$74m, funding includes US$60m debt. Permitting was straightforward. One other project inside REM.
People are quick to bag Board and management, but is case that they have done a good job.
First, they finally got a good deal on Calatos in a very tough market for copper and equities?
And second, after kissing over 30 frogs they seem to have found a very good new direction, offering near term cash flow, and it’s gold, and which they have the technical and financial capacity to implement.
And bearing in mind that in kissing a box of frogs they looked at deals where resources were misrepresented. So it took good technical nous to sort wheat from chaff. They only had one shot at a new “cash flow” deal. Imagine if they had bought the wrong one.
People now forget they did v good job exploring Calatos, unravelling it geologically. They will now bring these skills to bear in Colombia. Yes there are risks, particularly permitting / local issues, notwithstanding the big improvement at government level. But, as MNC have stressed, Colombia as a country with excellent under-explored economic geology has huge potential, and MNC’s new project seems to have a good slice of this potential?
Time will tell.
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