big fall in price , page-22

re: big fall in price - to b2 Hi B2,

MTX is a tricky one. It did come into my radar in the last report as a potential turnaround. I didn't spend much time on it because I saw other opportunities that were clearer to me in outlook outside the resource sector.

At the time I couldn't get any feel for what the future outlook was in the Nickle Royalties and although the eps, revenues, operating margins,cash flows etc... improved from the Harbour Capital days I didn't think it could be said that this was comparing apples with apples in comparing 2004 first half with 2003 first half.

Since then they have released the 3rd quarter activities report on 28th October and I just glanced at it then and it does contain some numbers that would need to be crunched to work out the potential outlook on profit. Don't know how easy that would be though to do with accuracy - not that easy I feel based on what I just read - seem to be a few things that can affect it?

However, looking at the price action since the day of this report I would think that someone has possibly crunched the numbers and likes the outlook? Have you?

Maybe one thing worth noting on the next eps calc is that the eps they calculated in the half year report was based only on the 33 million shares and there are now 53 million so potentially eps growth will be negative for the 2nd half unless net profit is up substantially? Might be though - would need to do some estimates using the loyalty revenues in the 3rd quarter report, make projections and maybe a few assumptions on margins etc...

Not an easy one to work out - sorry not much help.