New York, NY (PRWEB) January 28, 2008
Metals and Minerals Digest has published commentary in article format on gold valuation and also prefaced the article with an aside valuation summary on Metanor Resources Inc. (TSX-V:MTO)(Pink Sheets:MEAOF).
The article may be viewed free of charge at the following URL: http://metalsandminerals.net/f50.htm
Excerpt from Special Mining Sector Advisory: "Advisory dated for the trading week beginning Jan 28/08: Near Zero Downside Risk, Large Upside Probability MTO.V ... Investors would do well to ensure they are solidly long MTO.V as word of North America's newest gold producer gets around to the investment community and the valuation deal that exists sinks in. At the Vancouver Resource Conference this last week management of Metanor Resources (MTO.V) said they are heading back to their newly refurbished mill to pour their first gold bars. Production on Metanor's Bachelor Lake Mill is from their nearby Barry gold deposit, where a conservative estimated 35,000 oz gold will be poured in 2008 -- of which the first bar is expected to be poured this week. Metanor will ramp up its milling facilities from it's present 500tpd to 1000tpd and is expected to produce in excess of 60,000 oz gold next year. Currently trading at less than CDN$0.90 cents, no debt, over $6Million in the bank and a market cap of less that the value of their milling facilities. There is relatively zero downside risk considering the aforementioned and the fact there exists large readily expandable resource base that Metanor possesses, also forward projected revenue will be very large when the production is ramped up to 60,000 ounces/yr at an estimated cost of only $300/ oz ... the metrics scream for a higher share price with less than 70K shares outstanding."
Excerpt from Market Commentary/Article: "This last week the U.S. Fed announced a rate cut higher than expected at 75bps and while the U.S. dollar took a plunge, the price of gold has shot up above US$900 and the pressure is on for us to hit a new all time high yet again. The current weakening of the U.S dollar worldwide coupled with the current mortgage and debt crisis within the country, has captivated the attention of investors and economic commentators from across the world. One of the strongest economic indicators of the world's gold value is the fluctuation of the U.S. Federal interest rates and when these interest rates decline, the gold prices incline. The rate cuts, unemployment rates and the overall U.S. economy's downturn should keep the gold market stable in the short term, and the gold market's perspective bullish for the long term. ... If gold were to react in the same fashion as it did during early 1980, it is possible that on a "tempered" inflation adjusted bases gold could reach a price well over US$3,000 per ounce ("untempered" inflation adjusted from January 1980 to 2008 and we are talking closer to US$5000). While this sounds preposterous, remember back to the technology stock boom of the 1990's. There were numerous critics who were very vocal when the technology and internet stock revolution began ..."
# # #