Going back through all the Medusa announcements back to 2004 it looks even more obvious that MNE will have a substantial rerate.
MNE seems to have struck a more opportune deal to acquire 80% of Comval than MML did for 50% initially of the Philsaga project. To obtain the balance after similar exploration results to ours they then had to pay more than twice MNE's current market cap for the balance.
The early exploration results are eerily similar with multiple successful targets using rock chips and trenches. MML will have two 200,000 ounce operating gold mines plus copper over the next couple of years just up the road on the same fault line. Their cash costs will be less than $250 per ounce. Extraordinarily low.
In 2 to 3 months we will be at a similar stage to MML was in late 2006 with a similar share structure ( after completion of Philsaga acquisition). Their sp was over $0.70 and rising at that time to over $1.20 by mid 2007. This was when the gold price was just over $600 per ounce. Now it is US$1700 per ounce. After a failed unwelcome takeover of MML by a hedge fund causing a distraction they then continued an aggressive exploration campaign which saw a near uninterrupted rise to over $3 over the following couple of years.
History repeating ?
MNE Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
