research report

I have just come accross the State One Stockbroking Ltd research report on Mount Burgess. This was released in May 07 (prior to the recent MTB announcements about the huge increase in the diamond drilling results).

It can be viewed at :
http://www.stateone.com.au/market/pdf/MTB_Research_Report.pdf

They rate MTB as a speculative buy, valuing the current Kihabe project at between $1.20 and $1.42 per share. [I believe this value will increase as the resource is expanded with the current round of drilling and the improved results from the diamond drilling].

They place a lot of emphasis on the diamond project and imply that the super profits are going to come from the diamond project (way over and above the Kihabe valuation above)

They make statements in the report like "its only a matter of time before a gravity anomaly is drilled and a diamondiferous kimberlite is found"

Their short term prediction for the Kihabe project is 30c (which will be achied within a year). This is based on a market norm of between 10% (TriOrign) and 50% (Tennant Creek Gold) of the NPV of the project.

A great report!