The $1.75 valaue and the $1.55 NPV seem to explain the current share price reflecting essentially a 50% or so discount.
Given the uncertainity surrounding the current markets and the fear existing, the lack of revenue being generated and the $120m over hang for the development of Glouscter, the 50% discount seems to be explained.
as indicated in an early post MPO while having a lot of potential, and one of many, the lack of revenue is holding back the share price. Reserve upgrades are fine, but production is the real key.
Accordingly, MPO will flucuate around this range with some 10-20% moves until production.
And as production is stepped up, so does the price and get closer to the NPV or target price.
Also production in FY 09 is only 5Pj but still show a loss and only in FY10 does a profit emerge.
patience is really required for this, together with improvement in the market conditions and PRODUCTION
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
