Lets compare ni producers on various parameters to MC valuations.
WSA
cop 2.50 production pa 27,000T MC 650M, 0.5MTPa mill maxed
mine life 6 years
SIR-IGO NOVA
Cop 2.20-2.80 say 2.50 production pa 23,000T by dec2016, MC 1,100M, 1.5MTpa mill, mine life 10 years
MCR
Cop 5.80, production pa cut to 8,000T, no mill, MC 60M, mine life 2 years
Glencores murrin murrin
Cop unknown assuned 3.00, production pa 27,000T, large mill, Glencore book value 30 june of $1,100M, mine life 8 years
MBN
COP now 2.75-3.25 say 3.04,
production pa 18,000T, say 20,000T by jan as stated by CEO in feb
may increase to 25,000T in 2016
largest ni mill in sth america 2.5MTpa larger than bhps & POSs Bswan of 2.2mtpa
Mine life 16 years but say 20 years inc bottom of pit at higher grade as in 2014 figures
MC $77M aus
On These figures MBN is grossly undervalued in MC by 9 to 15 times that of all of the others on costs, production, milling, mine life.
How can it be so cheap with this level of profitability. Legacy issues of debt CN n offtake dramas may be blown away for good shortly.
MBN Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
