New York, NY (PRWEB) July 30, 2008
Metals & Minerals Digest has published a review of the last seven years historical seasonal/cyclical gold price action; the results suggest gold is nearing summer lows prior to rallying strongly into autumn. The digest has also published an upside valuation/summary on Metanor Resources Inc. (TSX-V: MTO) (Pink Sheets: MEAOF) as North America's newest gold producer - identified as an exceptional risk reward scenario for investors.
An abridged copy of the report may be viewed free of charge at: http://metalsandminerals.net/report0808.htm
Excerpts from Investment Advisory regarding Metanor:
Upside Valuation/Summary: It is not often a new gold mine comes online in a stable jurisdiction, especially offering as much near term operational value and future potential as Metanor Resources wraps up bulk sampling and commences commercial production at it's 1,200TPD (upgradeable capacity) Bachelor Lake Gold Mill. The current market cap of MTO.V is approximately half the replacement value of their infrastructure alone, ignoring the ~1M oz gold resource, significant exploration potential and substantial revenue projections.
Jay Taylor, mining expert, has made MTO.V his top pick in 2008 saying "This is a story of production, exploration, and building ounces."
Production in 2008/09 should conservatively come in at 25K - 35K oz gold and ramp up from there to 55K - 65k oz in 2009/10. The mill is configured to produce dore bars of gold, with a small component of silver. MTO.V has ~1,000,000 oz of Gold (NI-43-101 measured and indicated) available from their three properties and the ongoing exploration drill program at their ever expanding Barry deposit is just one of many venues to expand the resource base that is exceeding expectations (new drill results expected soon). Metanor Resources' gold milling facility and infrastructure has a replacement value of ~$140M and sits geographically as the only mill located within 200 km in a gold rich district that possesses additional resources exceeding 1.5M oz.
Metanor is also amassing properties within this area, near their Bachelor Lake Gold Mine & Mill, and will play a central role mining the resources in this region for decades. Their forward projected EPS will likely be very significant as a debt free unhedged gold producer and the current market cap relative to expected revenues is disproportionate (analyst report pegs $3+ per share price and no need for dilution). With approximately 73M shares outstanding and currently trading under CDN$1/share, the present valuation of MTO.V provides exceptional opportunity for investors. Over 50% of Metanor's outstanding shares are held by institutional interests, amongst them Dynamic Mutual Funds (managed by Goodman & Co.).
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Reports herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the disclaimer and disclosure section of the above referenced URL.