Here's the thing Meerkat. To an extent I agree with you. In fact the number of shares on issue was one cross against MRX when I bought. MPO is another that has suffered this fate. Because of sins in the past they now have close to a billion shares on issue (MRX has about 3/4 of this). No matter how good the new MPO team are or how impressive their assets are they have one billion shares and they are suffering for it.
One big difference though is that MRX are in production N-O-W but with MPO they are still a way off. MRX now has an eps and a PE and you know how the market loves that stuff. Going forward MRX will have limited need to issue more shares if at all. They now have an income to help fund further exploration and they could now qualify for a decent debt facility.
Aspect Huntley have a forecasted EPS of 2c for year 08 and 3.3 for 09. The market seems happy with a PE of about 15 atm for producing miners. That would make an SP of 30c for 08 and about 50c for 09. As a bonus the market could even trade them at a premium if any further exploration looks promising.
As time goes on there is always the possiblity of enhancing shareholder value with a buy back as production ramps up.
So the key here is production production production.
I'm off for a haicut, we'll talk about this more later.
MRX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
