bazz77, Presumably the cash on hand is taken into account in the market valuation already, so you may be double counting. In any case, $50-60 million is really not that much for a mining company. In MBN's case they have sokme substantial CAPEX coming up.
Book value may well be $1.07/share, but so what? How does that compare to what book value was 2 years ago? That will give you a good indication of where this thing is headed. That book value will look decidedly worse when MBN have to issue more shares at current prices.
Perhaps, rather than asking Propunter to rework, you could do some calcs yourself and justify why you think share price will double in 12 months?
Put yourself in the position of a potential buyer - would you pay book value for a mine that is losing money? To me, book value is somewhat irrelevant when it comes to mining companies. I am much more interested in what is in the ground and at what cost they can produce.
MBN Price at posting:
55.9¢ Sentiment: Sell Disclosure: Not Held
