should i sell my mnmo, page-4

Herbert, I agree that the SP would be over $1 had the market conditions not changed and the access agreement been signed.

However you are incorrect in saying that they are likely to raise capital before the options expiry.

As for the SP tripling in 7 months, I have been asking myself the same question. What I came up with is this...

At the moment there are very few buyers in the market apart from a few traders working the panic dumps and recoverys and small scale positions from investors averaging down or bottom fishing. There really isn't the volume there was 3-4 months ago. I think many are sitting on the sidelines waiting for the bottom. This bottom will come eventually and normality will return to the market.

Also currently the market is valuing Mantle without access to 500Mt of coal or without any phosphate resources. It is even heavily discounting the in-ground value for its gold JORC and uranium. The current MC is $7 million and if you take into account the $3 million in operating capital the market cap is a measly $4 million.

In order for the options to be in the money the SP would need to be roughly 30c like you say. This gives a MC of roughly $30 million which I think is definitely achievable as NEC has a MC of $100 million with just a 500Mt thermal coal target which is currently being drilled.

I am sure the Mantle management have there eyes on these options and will do everything within there power to have as many converted as possible as it will be required for feasibility on a few of their projects. There may even be a case for an extension due to the credit crisis and delays in access as Mantle still has plenty of cash reserves for operation.