Play nice guys
. MEP will do both. They've indicated divvies are on the cards, and once the DFS get upsized to large fries and coke, and we add other JV tenements (ie Camel Lake etc), divvies will be
substantial. I expect MEP to do both exploration, appreciate and pay divvies.
I expect MEP to underperform until ADN gets asx300. ADN is currently ranked 288 on the ASX, so if they stay at that price they should get in, and a new flock of investors will look at ADN and find the arbitrage to MEP, causing MEP to significantly outperform ADN until the arbitrage has narrowed. I don't think the share price will reach that 1/3 of ADN as suggested by some, as MEP is the minority holder and management needs to be more pro-active - this will cost MEP, perhaps 10%????? but that could still mean we touch 1/3 of ADN MC minus 10%, a MC which is about $200M and give us a juicy share price of almost 40c. I expect this rerate is only weeks away.
Assuming ADN gets ASX300, MEP will not only follow, but it will also outperform due to the increased awareness of its discount to ADN. ASX300 will bring bigger pockets to the table.
And once rerated, their new exploration settlements will mean much less dilution in the future. Big difference between alloting $100K at todays share price compared to alloting $100K at $0.40c / share.
Another trigger to the future, is the implied revenue for MEP is $20M, and that is based on the outdated PFS. That $20M is 1/4 of todays share price
effectively a P/E of 4. I'll leave it up to you what the actual revenue will be, but a recent announcement indicated an upgrade to Great WHite, Great White is still open with huge upside potential, add in Camel Lake, Careys Well, Cement Additive, and whatever comes out of Nanotech. Our revenue could be todays shareprice. Anyone want to guess a P/E???
I realy hope ADN makes that ASX300.
