Its very amusing to watch the SP lately. How low could it retardly go? It reminds me of the incident that not long ago oil price dropped to below zero then quickly went back to $45. Hilarious and astonishing isn't it?
Back to MDI, $33.5M market cap with 8M in cash and assets (AME shares), so EV = 25.5M. In ground value Ev/oz = $34 while the average EV/oz for a tier 1 deposit is $180. The only possible risk that can make this deposit completely worthless is the FS in January comes up with a initial CAPEX of $150M and an AISC of $1600. Some might argue that this risk might explain why the SP was depressed, but wait...
1. The AISC could not be high as we're gonna start with an open pit with mineralisation literally from surface.
2. We already had a mill, it will only cost $10M and 5 months to put it to work.
In conclusion, to some this is a dog stock. To others, this is a great investment. If you can work on facts and numbers, you would know which side you should pick!
