Macquarie on SYR - an MNS warning?

Macquarie have just issued a report on Syrah, in which they value the Balama mine project at A$229m.

This is clearly a matter of some concern for SYR holders, but it is probably an even bigger concern for MNS shareholders. If Balama, with a larger resource than Nachu, and four times the ore grade (for the first ten years, at least), is only worth A$229m, where does this leave MNS?

Whether we agree with the Macquarie valuation of Balama, or not, is hardly the point here. Frankly, our opinions don't count for much. The important thing is whether the potential financiers believe what Macquarie has said, and accept their valuation methodology.

If they do, then it is not easy to see how those same financiers will be persuaded to stump up with the required A$400m for a mine which, if Macquarie are to be believed, is worth something less than A$229m. In their position, would you?

Cheers,

Prime1