Andrada Mining acquisition elevates the miner to emerging mid-tier status. Watch the video here.
Hopefully Simon Thompson of the IC will write up a follow on report post the A4 results. Hidden value now becoming apparent.
Good posts Doc. I concur with your analysis. It looks like the market could just be waking up to the hidden value of MTR.
Inv123, I suspect that the Board of MTR have run the math on the value of the Royalty following Sandfires quarterly updates released yesterday. MMc seemed pretty ecstatic in the MTR release on A4. Looking at the BOD biographies they would appear to have a complimentary skills set that would allow them to roughly value the Royalty on the declaration of a resource. Once A4 goes into production it will be worth a substantial sum. As you say the cross over with KML is substantial. A resource declaration there then happy days all round!
Inv123. I completely agree with your comments. I have pasted some comments made by a poster on ADVFN which follows your line of thought as well.
Hi Dreamtwister, unfortunately this is AIM. Pretty much the only way to finance the business was through placings/capital raises. The past is the past. MTR is now a very different beast. The company has an ISDA Master Agreement secured on SFR shares with a major International Bank. This collar facility is almost unique for an AIM listed company. This was made possible by the sale of MOD and the JV for liquid SFR shares. Once A4 has been designated a resource then a value can be placed on the 2%NSR. That will be the game changer in my opinion. Once A4 goes into production there will be a revenue stream from the Royalty plus a significant royalty value increase using an appropriate DCF. This value will get bigger as the resources are proved up. Then if KML hits something similar to A4 then happy days as MTR hold a 2% Royalty over their concessions. I feel that the hidden value within MTR is about to be unlocked. Hopefully the current share price will become a distant memory!
Good day from down under. I have been giving some detailed thought to MTR and I seriously thinking we are coming towards a defining moment.
Three reasons.
1) Cobre. MTR holds circa 20% of this VMS potential stock listed recently on the ASX. Share price suffered a sell off under the recent world market sell off but has recently bounced back very strongly. We were originally told by the company that we would have assay results in early March. That date came and went. Cobre went into a trading halt this morning. All I can think is that the originally assay results were so good that they had to be re assayed? We should know when the trading holt is lifted on Thursday. My feeling is that they will be excellent. It is also close to Sandfire’s Degrussa mine. Potential take out?
2) Sandfire. We are due a quarterly update from SFR. MTR have a USD2m royalty payment on the T3 deposit in Botswana. What is much much more interesting is the A4 deposit which MTR hold a 2% NSR over. This could be potentially be very valuable, a game changer and is the hidden value that Simon Thompson alluded to in his Investors Chronicle article where he picked MTR as one of his top 10 share picks for 2020. The quarterly updates from SFR should give us an update as to progress on the A4 drill campaign at A4. Perhaps early days to come up within an inferred deposit but we are on the road to a monetised value and probably a lot sooner than the market thinks. This will then allow MTR to finally attribute a value to the NSR in its balance sheet. This will further strengthen the balance sheet and allow potential leverage and release of capital for future under valued opportunities. If A4 becomes a mine then the royalty that MTR hold will become very valuable and the embedded value will be attractive to specialist royalty companies.
3) SouthernGold. A recent investment into an ASX gold listed company focused on South Korea. The pedigree of the management looks very interesting as do the major shareholders. Noise coming out of the operation looks very exciting. Early days but the timing of the investment looks spot on.
Good luck.
Thanks Forest, that is very good news. If my memory serves me right we are over due news on Cobre. We should also get news on Southern Gold as well from the drill program in South Korea. The game changer as far as I am concerned is drill results from A4 in Botswana. This will give a value to the NSR that MTR hold over the SFR holdings ex T3. The hidden vale that IC has alluded to back in their Feb/March edition.
Agreed Keith. Also writing a collar on SFR at the current SFR share price would not make much sense. You would give away too much of the upside that might come from a re rating on the back of A4 results etc...
Can anyone get a quote to buy? I cannot get my order through on a kill and full basis either! Seems that the market is broken.
Here you got TF1 https://aim-watch.com/articles/price-monitoring-extensions-explained/
Yes at 9:10 this morning.
Good for you. I am doing the same and have a sizeable order in for tomorrow.
KB why use cash now to buy back now?
CK clearly you were not around in 1987!
Hi Keith it was a Bed and ISA!
Themis, why should they have taken this decision along time ago? They were clearly near a deal with the Thai JV partner and most likely he pulled a fast one at the last minute. MTR walked away. They should be commended for taking that decision. I was never keen on the Thai project anyway.
I feel this is a positive decision to terminate the Thailand JV. No point in throwing money at a high risk project. The market never really liked the deal in the first place! MTR will now be a much cleaner operation.
Hi Keith, I imagine they were probably not worth reporting. KIT E and W have a much greater chance of success. The original drills were useful to calibrate the AEM findings and to improve future drill targets.
At this rate you won't even be able to give THR away. What does that mean?