sto/esg/gastar/hgo tranasction implications, page-52

bonza,
You asked why is MEL lagging behind its peers? Basically it is about risk and proximity to cashflow coming in.

Mining companies go through a life cycle, from assessment, exploration, PFS, construction, production, etc.

As you may appreciate the risks in the early part of the cycle are higher than when the company is operating smoothly in production. The market price in these risks.

Obviously, MEL can't really be compared with AOE, which has progressed significantly since the day it was at 40c. Incidently, when AOE was below 40c and issued convertible bonds at 40c, many investors were nervous.

Also, companies like AOE when cash flow is imminent, is usually priced on a cashflow basis rather than on a resource basis.

To really measure MEL against its "peers" one need to measure the price of those peers at the same stage as MEL is in now. One significant advantage MEL has is that the CSM technology and market reception of CSM in general is well understood by the market compared to 10 yrs ago.

I think when MEL reaches the stage where AOE is now, the SP would reflect the potential of MEL cashflow. Meanwhile, is accumulate when the SP is down at the support level. Perhaps not a stock that would fire like SFR.