undervalued?

Howdy All

Interesting having a read of the recent BLK scope released yesterday and drawing some comparisons with MNM.

BLK have a 70% stake in potentially 1 billion tonnes of BC ie. 700 MT
MNM have a 50% stake in potentially 2+ billion tonnes of BC at BM ie. 1000 MT.

Comparing chem analysis:

BLK BC - high ash, high sulphur and a 3:1 strip ratio with a max 7.5m thick seam.

MNM BC - lower ash, high sulphur and a 1.5:1 strip ratio with a 50m thick seam.

More importantly (as mentioned yesterday, the buyer/end user is focussed on the CV):

BLK CV wet = 7.9 MJ/kg v MNM CV wet = avg 8.6 MJ/kg (over the first 4 holes) - a big plus to MNM.

BLK were recently offered $15 million for their 700 MT.

However, MNM have more BC, lower ash, cheaper opex to get the BC out of the ground and a 10% greater CV value.

MNM MC is $13 million with $3 million cash = $10 million + opps, etc.

Doing some numbers on that offer to BLK, I believe MNM is currently valued on approx. 50% of their stake at BM.

Therefore:

- 500 MT of BC at BM.
- 80,000 oz gold JORC at GC
- 1.5 Mill oz silver JORC at GC
- 125,000 oz gold inferred at CT
- 100 - 500 MT potential Mt M black coal
- LV tenements
- phosphate at Barkley

are all freebies as determined by Mr Market!

Of course, the above are my calc's - happy to be corrected - but for mine, MNM to me is way undervalued.

Cheers K