Is there still value in MEI? Well consider this MEI's maiden mre...

Is there still value in MEI?

Well consider this MEI's maiden mre is 409Mt for 2626 treo ppm, (631ppm is MREO), work out the tonnage on mreos, this is what I came up with, note the prices are probably out of date. Even if they only recover 50%, it's still a lot of mreo resource value at $16.4b USD or $25b AUD, so at $447m AUD value, is it still good value yes it is imo. And they are pulling results outside of their maiden resource area.




Now let's pull out a non-producing Goldie for comparison and use DEG as an example 295.5Mt for 12,675,000 ounces, gold is currently $3590 Aud per ounce, so $45.5b in resource value right? DEG is currently valued at $2.4b.

So 1/19 of the total mre value for DEG.

MEI is 1/112 of total MRE Value for MREOs only currently. Fair value is probably $2b+ allowing for further work and pre-production capex for a non-producer which will cause a bit more dilution. And yep I think around 1/20 - 1/25 is probably fair for a non-producer, as it allows for expenses, delays, (the ramp up phase when they start production), etc.... And of course the obvious (no one is going to recover all that mreo) So I would rather set the bar low and be surprised, then set it too high and get disappointed.

GL guys, as a VMM holder I hope MEI continues to be successful.