the love affair is over ...

Why is MUN trading at 26.5 cents with gold at US$1116.00?

Let's call a spade a spade.

The market feels like a jilted lover. The market's love affair with MUN is over.

The market fell in love with MUN before an ounce of gold had been produced on the basis of slick promotion of a super low cost gold mining operation. Numerous brokers were recommending MUN as a buy.

The market has been jilted and the September quarterly was the the divorce blow. The market is not accepting production, more than a year after mining started, at 25% less than predicted combined with cash costs of more than 100% higher than predicted plus a number of mine issues thrown in for good measure.

There is no 17 million dollars a year of earnings - EBITDA based on just a US$750 gold price which of course early last year before production translated into even higher earnings.

What the market now sees, rightly or wrongly, is a small, cash strappped gold miner with potential mine safety issues that has a small exploration programme as a result of being cash constrained and is battling to make ends meet.

MUN has lost its sex appeal. In fact the market sees MUN as having next to no sex appeal compared to the West African juniors that are cashed up, in a number of cases have substantial gold resources that dwarfs anything MUN currently has, plus the West African juniors have no problems raising any cash they might need from investors eager to jump aboard for the ride and are carrying out very active, exciting drilling programmes in gold elephant country.

The market feels like a jilted lover. The market's love affair with MUN is over.