Hi,
My thoughts with references regarding MWE:
The DRC has demonstrated its absolute power in the past and that can unnerve a few people in the current market.
(See Ref. MWE Company ann: 7/11/07 "DRC Mining Contracts")
It doesnt concern me as an investor in the company.
- Due to this price target in the broker world
(as written in January 08):
*TRICOM: $0.34/share valuation is based on a development scenario at Kapulo that assumes a total
3.5Mt of sulphide ore is mined from the Katanga and Safari North deposits over a period of 10
years. We have assumed pre-production capital costs of US$30M and life of mine cash costs
of US$0.90-1.00/lb with first production in mid 2009.
*(see ref:
http://www.mawsonwest.com.au/multimedia/1/MWE_SAFARI_NORTH_ 080130.pdf)
And it all seems sound to me.
What this market doesnt realise, due to being hit on the head with a plumbobbing global economy, is its future price movements.
Think of how much extra information we will have about the magnitude of strikes and the diversity of resources, from Copper to Gold to Ore in the 2009/10 end of the table.
(See above .pdf ref:)
written Year end June 2007A 2008F 2009F 2010F
Revenue - A$Million 0.0 0.0 0.0 25.2
Each and every strike and report to the public will ensure greater and greater $ resource value $ for the company and the price will casually but surely step up and up with that growing discovery and reporting momentum.
As a holder i am feeling more than content to stay around for this modest 2 year growth and watch the company go from having resources earning profits of $25Mill to an unlimited potential.
(I beleive it has already increased markedly since the date the above revenue figure was even written in January 08).
Its Geographical exposure will support and possibly create this growth with consistently good target results.
Inevitable announcements just around the corner and i expect to see the price consolidate. Note that at these levels, even a broker expects to make 100% profit within about 2 yrs or 50% p/a - which i take great confidence in.
Heres to growth companies!
Cheers
MWE
mawson west ltd
